Editor Note: The Gold Report contains almost no charts. The entire analysis
of the gold market and its powerful
subterranean forces has shifted from
a quantitative analysis toward a qualitative
analysis. Imagine from a numerical study
to a focus group study. The Price of
Gold will therefore enjoy a resurrection
from a quantum leap driven by global
forces toward the return of the Gold
Trade Standard.

"Nobody
really understands gold prices and I
do not pretend to really understand
them either." ~ Benjamin Shalom Bernanke (moron
liar head of the USFed, with rubbish
Doctoral Economics degree on revisionist
history of Great Depression, and blind
eye on all gold suppression done by
JPMorgan & Assoc, who will pass
the Weimar keys to the next Bagholder)

"Normally,
the dynamic runs something like this:
leading economic measures deteriorate;
the economy subsequently deteriorates;
leading economic measures improve; and
the economy subsequently improves. The
result is a positive correlation between
leading measures and subsequent activity.
In contrast, the recent dynamic runs
something like this: leading economic
measures deteriorate; the Fed responds
with some massive intervention that
is unprecedented in scale; economic
activity and leading measures temporarily
improve; but since these improvements
were entirely artificial, the improvement
is quickly followed by fresh deterioration
in both economic activity and leading
measures. The result is an inverse correlation
between leading measures and subsequent
activity." ~ John Hussman (describes systemic failure)

"Forecasting
is easy. It is the model that is the
hard part." ~ Jim Rickards (rebuttal: Almost no model has any value anymore, since financial
markets are all distorted, skewed, and
controlled, which requires the analyst
to use other logic, to stand on perches
to view ongoing developments, and to
rely upon other right spacial brained
methods to detect paths and patterns,
as well as deep inside sources to determine
what the key projects underway will
emerge. Rickards has no Eastern sources,
and ignores most projects and pathways
that emerge from the Eastern Hemisphere.)

"[Countries]
want physical custody of gold. They
are positioning for the day when there
is a massive loss of confidence in paper
money. You are seeing it with massive
acquisitions of gold by Russia and China
taking place through channels that bypass
the London Bullion Market Assn. They are buying mines in Western
Australia. They are having the ore refined
right there in Australia
at the Perth Mint,
and then shipping the gold straight
to Shanghai.
They are completely bypassing the London
market where they minimize their market
impact, which is a smart move. That
is what you would do if you were trying
to buy gold and not run up the price.
You would do everything in secret and
that is what is going on. When the international
monetary system collapses and it comes
time to rewrite the rules of the game
and create a new system, it is going
to be all about how much gold you have." ~ Jim Rickards (still with excellent insights)

"The
long-term solvency problems of the United States are going to
trigger a massive decline in the dollar
in the not too distant future. That
in turn will give us the early stages
of hyper-inflation in this next year.
We are basically at a point where we
cannot kick the can down the road. Going
forward from here, you are going to
generally see a weaker dollar, and it
will get much weaker. You are going
to have a dollar panic, but no exact
timing on that." ~ John Williams (finally he veers from the incorrect notion that USFed monetary
expansion will produce nasty price inflation,
with recognition of the currency factor
as dominant)

"Fathom
the hypocrisy of a government that requires
every citizen to prove they are insured,
but not everyone must prove they are
a citizen. Now for any of those who
refuse, or are unable to prove they
are citizens, will receive free insurance
paid for by those who are forced to
buy the insurance, because they are
citizens." ~ Ben Stein (comedian who still maintains
the clownish view that 911 attacks were
perpetrated by young Arab boys)

"The
Israeli-Saudi Axis will keep blossoming.
Few in the Middle East know that an
Israeli company, with experience in
repressing Palestinians, is in charge
of the security in Mecca. If they knew, with the House of Saud's hypocrisy once more revealed,
the Arab street in many a latitude would
riot en masse." ~ Pepe Escobar (reference to al-Majal G4S)

"You should see the physical
movement of gold bullion bars that takes
place off-market. We cannot secure enough
cargo planes to move physical from the
West to the East." ~ Colleague
of The Voice

## USGOVT THREAT & USDOLLAR PANIC

◄$$$ THE USDOLLAR HAS TWO TYPES, PRE-2009 AND POST-QE, THE FORMER MORE
VALUED AND QUARANTINED, THE LATTER DEBASED.
A COMPLEX SEQUENCE HAS BEGUN TO EMERGE
POTENTIALLY. THE USFED STANDS BY TO
PRINT UNLIMITED MONEY. THE REPO MARKET
IS SEIZING UP. THE USTREASURY BONDS
ARE REGARDED SUDDENLY AS UNWORTHY COLLATERAL.
PRESSURE COMES FOR A USDOLLAR SPLIT.
CONSIDER A SCENARIO FOR A SEQUENCE MECHANISM
IN END STAGE FOR USFED CONVERSION OF
USTBILLS INTO CASH SO AS TO AVERT A
USTBOND COLLAPSE, SINCE THE USGOVT DEFAULT
(EVEN TEMPORARY) HAS ACTUAL CONSEQUENCES.

TRANSLATION: CHINA MIGHT BE FORCING A DEFAULT
IN ORDER TO OBLIGATE THE USFED INTO
CONVERSION TO CASH. THE USFED COULD
CONVERT INTO A GIANT CONVERSION WINDOW
FOR USTBILLS, GOING TO CASH USDOLLARS.
CHINA
IS CONTENT TO TAKE THE CASH, LOSE THE
USGOV RISK, AND CONVERT TO GOLD. JUST
AN END GAME THEORY DURING A TIME WHEN
THE OUTLANDISH IS VERY CREDIBLE. $$$

Insider information has revealed that the USDollar has two types. A quarantine
of sorts (called cordon sanitaire) was
built around the internationally traded
USDollar in 2008. It is widely held,
like in Switzerland,
London, Hong Kong, Singapore, and Panama. The motive was to protect vast USDollar
holdings in cash accounts, even cash
bundled stores in warehouses. The
fundamental picture involves protection
of honestly earned USDollar holdings,
in the face of the bankruptcy of the
US corporate government. The deep hint is for
the groundwork being laid for the break
of the USD into domestic and international
currency. The legal aspects of the
USD split are coming into view. Time
is ripe for scenarios to be floated
as potential, especially when parts
of the plan might be in motion and visible.
Explore the backdoor of a USTreasury
Bond default, with revolving front door
in Weimar USDollar expansion like a
centrifuge. Something big is going on,
an unprecedented trial run, and the
news is reporting nothing but bare superficial
meaningless information. In simple
terms, the global USDollar will be a
gold instrument. The domestic USDollar
will be a fiat toilet paper variety
founded in electronic bits, which suffers
rounds of devaluation. The dust
has risen, soon to settle.

China might be in the control room with
the US-UK operators tied up in their
chairs. The USGovt temporary default
might have been intentional so as to
trigger the USTB/USD conversion process
legally. It could be part of a bigger
and more complex procedure, linked to
the Global Currency Reset amidst the
confusion. Later would come the
USDollar devaluation, after the main
creditors including China
have removed most of their risk. The
important churn could be conducted through
the USFed window, better described as
the revolving door. It could be well
planned and choreographed. The plan
might be to carry out a functional default
without the ugly publicity and dizzy
fanfare, like with formal USGovt
debt downgrades and all the investment
fund fallout. The bank syndicate would
also prefer to proceed without the Credit
Default Swap payouts kicking in
as nuisance, and the consequent deep
shame, the utter ignominy. Clearly,
the Big US Banks underwrote the CDSwaps.

Two types of USDollar are in circulation, with little comprehension. The USD
in 2008 and previous years stand in
contrast versus later printed USD currency.
The USDollars held at the time of Quantitative
Easing in 2009 and in following years
are technically different, badly debased.
Pre-2009 USD are subject to the cordon
sanitaire, the official legal quarantine
at work. The consequence is potentially
vast. The USD currency issued and held
before QE was instituted in 2009 will
hold value as it has been quarantined.
The USGovt creditors will not allow
that USD to be diluted and wiped away.
This USD must be legally redeemed either
via trade (real goods & services)
or via hard assets like land, buildings,
energy deposits, or gold bullion, even
port facilities. The newer USD currency
issued as part of the official sequence
of QE programs will be likely written
down very significantly in value, during
the devaluation. In a sense the asset
price inflation since 2008 is a fiction
in progress since based on an inflated
currency. The rectification would come
upon the USD devaluation of new QE money,
the impaired monopoly money. On
the international front, bank accounts
held outside the United
States would enjoy
the same protection as pre-2009 USDollars.
Domestic bank accounts would be treated
without protection, as part of the newer
tainted QE era. Think Old USD versus
New USD, with the USFed's Quantitative
Easing making the line of demarkation.
The foreign USD must abide by some rules.

The settlement process, or better described as shock phase, could take two potential
pathways. (1) The US Stock market collapses,
USTBond yields rise, banks suffer failure,
with no split or breakup between domestic
USD and international USD. This option
seems unlikely, since the alarms would
ring, internal damage would be disorderly,
and innocent people would be harmed
indiscriminantly. Another option
is more likely, which coincides with
the Jackass forecast of a formal USD
split. (2) The US Stock market holds its
value, the USTBonds hold their value,
but the USDollar is broken up into an
international currency and a separate
domestic currency. Almost immediately
afterwards, the domestic USD will endure
a series of devaluations. Expect a 25%
to 30% devaluation in the first round,
followed by another 25% to 30% devaluation
only a few months later. Expect a new
look to US currency in bill form for
carrying in pockets and wallets.

Next, consider that the USTreasury Bond market and its various appendages will
all be affected. The temporary USGovt
debt default might have been a trial
run from a legal and procedural standpoint.
The REPO Market has started to seize
up. It has been in trouble with unstable
sessions. In the last two weeks, it
experienced a different type of seizure,
not from lack of liquidity but rather
from defaulted securities. The USTreasury
Bond is being rejected as collateral,
as almost all financial institutions
cannot hold and will not accept a defaulted
security. Even though just a technical
default, it does not matter. Formally
and legally, it is called a Selective
Default. The consequence is important
and tips off what the final stage scenario
might be. The USFed will be the only
buyer in town, the only window where
the tainted USTBonds and USTBills will
be accepted, the bound toxic treatment
plant. The USFed would take in defaulted
USTreasurys of all maturities (mainly
short-term liquid USTBills) and issue
new USDollars. A tremendous humongous
spike in the M1/M2 money supply rate
would occur, as the USFed balance sheet
will triple or quadruple within days
or weeks. The Weimar Printing Press would shift into a very high
gear. The USD devaluation would be an
obvious step to take, fully justified
before the world.

The Chinese behind the scenes might be forcing the entire
issue of default in order to freeze up the REPO Market, to force the devaluations, and to ensure
the USFed begins redemption of USTBills
into USD cash. China
wants the cash, and wants to begin the
flood of inflation into the tangible
USEconomy, for all to observe. The Chinese
are angry, no longer the trade partners.
They are adversaries. When the Wall
Street banks reneged on return of Mao
Era Gold from the lease contract in
1999 in exchange for Most Favored Nation
trade status, the gloves came off, the
fur has been flying, and the trade war
has escalated. In the last two years,
the Chinese have been joined by the
White Dragons, a society of ancient
wealthy Chinese families. They wish
to change the world, to clean it up
of human refuse of extreme type and
environmental blemishes of extreme type.
The end game is upon us, and China is pulling the levers.
The USDollar devaluation and USTreasury
Bond default will be very complicated,
since so intertwined in machinery, so
vast in global reach. The USGovt and
USFed are equally vulnerable, no longer
able to control the situation. They
are in effect reacting to the situation,
due to their own extreme insolvency.
They are wrecked houses.

Down the road take an example like ABC Bank, which owns many $billion in USTBills
it wishes to redeem. Its long-term USTBonds
are different, held for bond yield in
core accounts. The short-term bills
do not pay anything appreciable in yield.
They are the main REPO Market item exchanged.
So ABC Bank puts $10 billion of USTBills
at the USFed window, and takes out $10
billion of USD cash. Following the default
events, even if selective default, the
USGovt debt is given rating downgrades.
The USTreasurys of all maturities start
trading at a higher yield than at the
point of default. Then comes the nasty
real world twist. Recall the REPO Market
has activity in both directions, pawned
and redeemed. ABC Bank goes to the
USFed and offers to buy back the same
$10B in USTBills, but at 99 cents or
98 cents on the dollar. As a result,
the USFed would refuse, since losses
would be realized in large volume.
The USFed insolvency would be made a
public spectacle, while the central
bank balance sheet would suffer massive
lost value. They would not declare asset
writedowns, since not a bank.

The USGovt debt default would move to a more widely observed default in full
view. So the USDollar devaluation
and the USTBond devaluation would be
inextricably linked by means of the
REPO Market. Some form of this dynamic
will play out and have a massive impact
on the USD, sufficient to force the
first devaluation and later the second
devaluation. The entire process
could be the Global Currency Reset played
out of the global reserve currency,
the USDollar. Much might be forced upon
the USGovt in recennt weeks and future
weeks, since insolvent and in default.
The mayhem would be played out on domestic
USDollars and domestic US bank accounts. The extent
to which foreign USD (post-QE) and foreign
bank accounts are affected is unknown,
but expect them to be protected by some
type of quarantine.

The offices of the USDept Treasury, the USFed, and many Big US Banks would have
Black Swans painted on their building
facades and interior walls. This is
the big reset. The purpose will be to
redeem suspect USTBills into USDollar
cash form via the USFed window. China will swap out from USTBills
and into cash, property, hard asset
caches (mines and deposits), and equities.
If a big US Stock market decline occurs,
China will be pleased. They
would require a stock decline first,
like 20 to 40% lower than current prices.
They will surely engage in a stock pounce
following a major pullback, as they
did it in 2011, the event reported on
Bloomberg. Seriously, the theory makes
sense. Adaptations must be made for
the deals cut to end the USGovt shutdown,
if it was actually a political deal
at all and not just a showcase. Behind
the scenes, great stress is being seen.
Already the February and March USTBills
have started to show stress. Behind
the scenes, the trigger might have been
pulled though, to initialize a technically
bound sequence, to give it a trial run.
That is the Jackass belief.

The key is the REPO Market, the primary liquidity transfer engine, the transmission
plant. The USTBill market might dictate
the entire process with REPO and USFed
churn. The REPO Market is the formal
mechanism that manages swaps. Given
the outsized rise in bond yields from
May to September, the Jackass believes
the Interest Rate Swap machinery has
broken, if not totally, then critically
so. The damage is not visible. It
is conceivable that China
is the main agent for pushing USTBond
yields up this summer toward 3.0% on
the TNX. The Chinese might have
designed a controlled destruction of
the Interest Rate Swap machinery via
massive USTBond sales, which in effect
forced the Big US
Banks into unwinding their carry trade.
The result might have been to force
these loyal USFed accomplices into a
straitjacket of deep insolvency plus
illiquidity (aka bankruptcy).
Once rendered immobile from profound
new capital loss, the behemoth criminal
banks would be more pliable to further
Chinese directed plans to dismantle
the Anglo financial machinery that plagues
the world. The REPO Market will reflect
the brokenness of the entire USTBond
complex, including its highly leveraged
IRSwap devices. The REPO Market is directly
tied to such derivatives. The cash flows
are exchanged in the REPO that come
from a floating leg and a fixed leg
of USTreasurys generally. It is the
center of the USTBond market for liquidity
purposes.

◄$$$ THE USGOVT TEMPORARY SHUTDOWN REVEALED MUCH. THE TRIAL RUN REVEALED
THE VULNERABLE PARTS, THE PORK-RIDDEN
PARTS, THE EXEMPT PRIVILEGED PARTS,
EVEN SOME VILE SCUM PARTS. THE FUTURE
USGOVT DEFICITS WILL RISE WITHOUT BOUND
FROM SOCIAL SECURITY AND OBAMACARE,
AS WELL AS A GROSSLY BLOATED MILITARY.
THE SOCIAL NET AND INTEREST EXPENSE
WILL EQUAL THE ENTIRE TAX REVENUE INCOME
SIDE. DEFICITS WILL SOAR. BUT THE USGOVT
DEBT DEFAULT WILL OCCUR FIRST IN HIDDEN
MANNER, THEN IN FULL VIEW. $$$

The USGovt shutdown did not achieve much of anything
visibly. Nothing was accomplished in
terms of legislative change.
Federal workers received two weeks of
paid vacation essentially. Many offices
continued to operate, on emergency function.
Some places like national parks and
supervised areas were shut down, only
to reveal citizen anger. Nothing visible
was gained. The same drama will come
up in January or February. Expect soon
to hear about additional costs to shut
down, then start up certain offices.
The political alignment was revealed.
In all, 87 establishment Republicans
sided for the status quo. But 144 Tea
Party republicans opposed the ongoing
situation. That comprises one third
of the USCongress, not a portion to
ignore or to take lightly. The Republican
Party has officially split in apparent
lines. Obama is seen as a lame duck
president, likely no measures to pass
until the 2014 election. Beware a dysfunctional
WashingtonDC in fully glory. To achieve
a resolution ending the USGovt shutdown,
a large supply of pork projects were
twisted into the usual hands. A $3 billion
Kentucky dam project was a beneficiary, among others
to be revealed. See the Yahoo News article
(CLICK HERE).
On a more sinister footnote, in California
no chemtrail spraying of toxic gases
has been seen in three weeks. So the
genocide projects were put on hold.

George from Chicago is a bright colleague on the burnt end of the MFGlobal criminal
deed. He pitched in on budget deficit
implications. He wrote, "In
3 to 5 years, the USGovt debt will go
into hyper-drive, if not sooner. The
main body of the Boomer generation will
retire. They will not contribute into
the tax revenue stream, while their
payouts will begin to pay out [even
to the Jackass]. Few of them have any
retirement funds to speak of, victims
of the tech telecom asset bubble. The
costs from ObamaCare will wildly add
to the deficit. Interest costs will
be far higher, possibly even explode
higher if bond yields rise. The interest
payments will be heading towards a $trillion
a year all by itself. To put that in
perspective, social net costs and interest
costs will represent 100% of current
tax revenues. That translates to
no money for military with defense contracts,
no money for federal & military
pensions, no money to run the government,
no money to manage the borders and parks,
and no money for pork." The
Jackass fully expects the USGovt debt
default to occur before the entire deficit
goes out of control and truly skyrockets.
Unchecked, the deficit could reach $2
trillion as the Boomers start collecting
Social Security and make claims with
Medicare, while the USEconomy goes deeper
into recession.

◄$$$ JPMORGAN HAS IMPOSED CAPITAL CONTROLS, WITH LIMITS ON WITHDRAWALS,
AND A BAN ON INTERNATIONL WIRE TRANSFERS.
EXPECT MORE BANKS TO FOLLOW THEIR LEAD,
BEGINNING WITH THE BIG MONEY CENTER
BANKS. THE OUTWARD SIGNAL IS THAT THE
BADLY INSOLVENT JPMORGUEN IS SUFFERING
DEEP LIQUIDITY PROBLEMS. IT MEANS A
BANK FAILURE COULD BE NEAR. THINK INTEREST
RATE DERIVATIVE LOSSES. THE EXIT DOORS
ARE SHUTTING VERY FAST TO MOVE MONEY
IN SIZE GLOBALLY. CAPITAL CONTROLS ARE
BEING INSTALLED ON A SCATTERED BASIS
ACROSS THE WORLD. $$$

JPMorgan Chase has made the news with an ugly splash. The giant bank will limit
cash withdrawals, prohibit all outgoing
international bank wires, with more
to come. Taking the USGovt debt cloud
and official shutdown as smokescreen,
even an apparent effort to front-run
official government capital controls,
JPMorguen has issued letters to all
its business account holders notifying
them as of November 17th, the bank will
limit all cash transactions (including
deposits, withdrawals, and ATM usage)
to $50,000 per month. The official message
was written by Donna Vieira, Vice President
of Chase Business Banking. The note
actually said, "These changes
will help us more effectively manage
the risks involved with these types
of transactions." Perhaps the
funds have been rehypothecated, or stolen,
left only as electronic garbage bits.
Strange times when JPM engages in the
risk management of ATM withdrawals,
the most bland part of any bank business.
It aint bland if the funds are gone
from insider grubby hands, tied to risky
derivatives as their hidden collateral.

JPMorguen Chase will outright prohibit all outgoing international
bank wires. The policy change is capital
control, otherwise known as captured
restricted money. The maneuver precedes
Bail-in confiscations, possibly. The announcement has caused speculation that the bank is preparing for a looming
financial crisis in the United States. The better
interpretation is that JPMorguen is
deader than dead, the recent runup in
USTBond yields since May must have blown
gigantic holes in their interest rate
derivative book. Only one credible reason
can justify such an extreme call such
as capital control, the limit on funds
movement. The big corrupt behemoth bank
has been in INSOLVENCY to the extreme
for five years. Actually this new
signal is of ILLIQUIDITY, meaning they
cannot afford to permit the movement
of money, when the big bank is not able
to offset the client movement. Conclude
JPMorguen is approaching a failure and
death event. One must wonder if the
bank will act as supervisor of excess
cash determined from monthly sweeps
and dictate their investment in preferred
stocks like their own bank stock. See
the Zero Hedge article (CLICK HERE)
and the InfoWars article (CLICK HERE).

Colleague Roger Weigand confirmed the validity of the JPMorguen note to its
clients. He received the same note on
restrictions. Simon Black (aka Sovereign
Man) advised that as starting on October
20th, the premier clients at HSBC USA will have to wait a minimum of five days before
transferring funds between their own
international accounts. The doors are
closing, the clamps tightening, the
channels narrowing. With all the horrendous
news about the gigantic banks, only
the reckless and naive keep any money
in bank accounts in them. Convenience
is not a good reason.

A final note on JPMorguen that touches real lives. A Hat Trick Letter subscriber
sent a note to inform about an unusual
development in the Catskills region
of New York state. The story changes from capital control to animal control.
He is fond of the vacation retreat area.
People in the resort region are real,
the area beautiful, and winters enjoyable.
He informed that a contractor friend
worked to complete a Bunker (his words)
for the ambitious Chief Information
Officer of JPM, which is situated next
to a 8000 sqft mansion he owns. The
Bunker has two foot cement walls, all
of which will be bermed over with dirt.
When done, it will be difficult to even
know it is there. The friend just earned
$54,000 staining the exterior of the
big house. The CIO lives in Princeton
New Jersey. The
workers joke that they will be able
to get there long before the owner will.

◄$$$ CHINA'S LARGEST CONGLOMERATE
HAS BOUGHT THE BUILDING HOUSING JPMORGAN'S
GOLD VAULT. FOSUN INTERNATIONAL HAS
PURCHASED THE JPMORGAN ICONIC FORMER
HEADQUARTERS, WHICH INCLUDES THE WORLD'S
LARGEST BULLION VAULT. CHINA HAS ALTERED ITS STRATEGY. IT IS ACQUIRING
GOLD WAREHOUSES IN THE BANKING CAPITALS
OF THE WORLD. REGARD THEM AS GOLDEN
COLONIES AND ARSENALS. $$$

Fosun International, China's largest private owned conglomerate invests
in commodities, properties, and pharmaceuticals,
and is also known as Shanghai's Hutchison Whampoa. The huge corporation
filed a quiet statement without fanfare
with the Hong Kong stock exchange. David Rockefeller would roll over in his grave,
except that he still breathes among
the Satanic warm bodies, soon destined
for the worms. His JPMorgan iconic
former headquarters at One Chase Manhattan
Plaza was sold
for a measly $725 million. One must
wonder if the sweet deal is in return
for a truckload of toxic USTreasury
Bonds in a package deal. The same
JPM HQ location is the property complex
that houses the their commercial gold
vault. It is the largest in the world.
One Chase Manhattan Plaza
combines three main components: a 60-story
tower, a 2.5 acre plaza, and a 6-story
base, of which 5 floors are beneath
grade (underground). Excavations, said
to be the most extensive in New
York City history, reached a depth of
90 feet. The construction is ornate
and elaborate, featuring white Italian
marble travertine, and fortified to
withstand both a nuclear attack and
a massive flood. The L-shaped plaza
levels the sloping site and conceals
six floors of operations, which includes
an auditorium and the bank vault.

The news two months ago was that JPMorguen is exiting the physical commodities
business, soon to be widely recognized
as a crime scene perhaps crawling with
police. The bigger news is that China just acquired the building
that houses the world's largest gold
vault. Contrast with the frenetic Chinese
gold imports in the last several months
from Hong Kong, totaling 2000 tons in the past two years. Conclude possibly
that China
has decided it will no longer settle
for domestically held gold and is starting
to expand its global vault facilities,
kind of like golden colonies or outposts,
better yet arsenals and armories.
The acquisition is an important step
in the Grand Paradigm Shift of power
moving from West to East. See the Bloomberg
article (CLICK HERE)
and the Zero Hedge article (CLICK HERE).

◄$$$ A PARADIGM SHIFT IS IN PROGRESS OF MOMENTOUS NATURE. BIG CHANGES
ARE COMING VERY SOON WITH A SWIFT HAND.
GLOBALIZATION AND BANK PRACTICES ARE
IN A STATE OF FLUX, WITH REFORM TO OCCUR QUICKLY. THE CHINESE ARE PREPARING TO WRITE
OFF THEIR USTREASURY BONDS AS LOSS.
INDIA IS FAST IMPLODING. THE
WORLD IS UNDERGOING GREAT STRESSES AND
CHANGES. $$$

The Voice shared some information gathered from high level meetings of various
types of the last few weeks. Events
are in motion, seemingly timed with
both the USFed Taper QE Talk and the
USGovt temporary shutdown. The events
reinforce the notion of the USDollar
devaluation and USTBond default are
in progress as part of the greater Global
Currency Reset. Expect the Global Economy
to suffer a sharp pullback in demand
and a brutal rollback of globalization.
Many large multi-national corporations
have made preparations, whose provisions
will lead them to function more independently
from the big Western banks (certain
to endure failures). They have issued
$billions in new bonds, and sit on mountains
of cash. If several big banks go bust
in the United
States, London,
and Western Europe, even Japan,
these cash-filled corporations will
survive easily. Furthermore, China has made provisions
to write off $1 trillion in USTBonds.
Their balance sheets might not be affected
very much, especially if gold rises
in value by a quantum leap. The accumulation
of USTBonds was part of the plan to
gain control and force the movement
of gold. The USTBonds will be a casualty
of war, a plowing under phenomenon of
global soil, the weeds submerged. However,
the real ugly event on the billboard
is the coming implosion of India, a victim of the Grand Paradigm Shift.
The cannot manage their imbalances,
since inadequate reserves and no domestic
gold mine production. Last week the
largest real estate developer in Mumbai
filed for bankruptcy. More important
failures will come soon.

Interpretations as obituary can be made. It means a global economic recession
or worse will hit hard in another important
more powerful round. It means the stupid
plan from 1990s onward where Emerging
Market nations do the industrial work,
while the Western nations sit back and
fiddle with asset bubbles is over. The
EM nations have wealth in store, and
will start a non-USDollar alternative
method for trade. The Western nations
lost legitimate income, and are saddled
with devastating debt with certain defaults
to follow. It means the current broadbased
USD banking system is dead. So banking
and trade under the USD shadow are going
away amidst deep global recession, as
new financial mechanisms kick into gear.
It means the Gold Standard will soon
return, on the trade side. Its day is
nigh.

So USFed Chairman Bernanke claims not to comprehend Gold price mechanisms. What
a crock! The august USFed owns some
gold bullion. According to COMEX corrupted
prices, since 2011 the hoard has lost
$545 billion in value. Central banks
own 18% percent of all the gold ever
mined. They intend to add as much as
350 tons valued at about $15 billion
this year, claims the World Gold Council.
Rather than notice the gold market ambushes
conducted by means of heavy naked futures
contract shorting, sometimes equating
to global annual mine supply in a single
two hour segment, the quack economist
Bernanke instead interprets the gold
price decline this year to reduced need
for disaster insurance. What a crock!
While the USFed has expanded the money
supply in utter desperation to meet
the liquidity requirements of a grotesquely
insolvent banking system and decrepit
USTreasury Bond arena vacant of foreign
bond bidders, the COMEX and its Wall
Street & London criminal agents
have been suppressing the Gold Price
effectively. They do not wish for the
USTBond to have a strong rival with
a bull market banner. The price suppression
efforts have continued during the USGovt
budget dispute and office shutdowns.

Central banks in the Eastern Hemisphere
are eager to grow their gold reserves,
sensing a sovereign bond market breakdown
and an insolvent banking system that
defies solution, thus the Gold Standard
return. As central banks were buying, investors were losing
faith in the metal as a store of value.
What a crock! The Hat Trick Letter has
chronicled the broad deep and sturdy
gold demand across the world, including
the United
States and Canada, where coin demand outpaced the two nations
in mine output by 25 million ouces of
silver. The investors are victims of
a crime scene at the COMEX, whose accomplice
is the Wall Street bank community, with
the USFed the mafia don in charge, and
the regulators at the CFTC paid to remain
asleep on watch. The stories eagerly
report heavy losses by John Paulson
and George Soros (born Gyorgi Schwartz).
The stories also eagerly report massive
mining firm asset writedowns by an estimated
$26 billion. The fool Bernanke, whose
PhD in Economics should be stripped
away, is on record as describing gold
as a commodity asset rather than money,
with an avuncular folksy moronic viewpoint
that central banks own bullion as a
long-term tradition. What a crock!

Gold is ballast to the banking and currency system, missing in action before
and during the Global Financial Crisis
that has seen no end in sight. Gentle
Moron Ben is joined by system wag Nouriel
Roubini who used to command an active
brain stem, before he sold out. He properly
warned of the mortgage bust, but sold
his analysis to claim a recovery is
upon us, helped along by wise policy.
He actually said, "Bernanke
was suggesting in his own way that too
much importance is given to gold, as
it is too hyped. Gold is not a currency."
If it is not a currency, then they
must explain why is it involved in the
majority of FX currency swaps. See the
propaganda rubbish piece for update
from the enemy Nazi camp, replete with
source of humor for its pathetic intellectual
discourse. See the Bloomberg article
(CLICK HERE).

◄$$$ PAUL KRUGMAN IS AN ECONOMIC MORON
WITH A PAID FOR NOBEL PRIZE. HE BELIEVES
THE GOLD STANDARD DOES NOT WORK. IN
FACT THE GOLD STANDARD DOES NOT SUIT
THE CRIMINAL SYNDICATE PURPOSE, NOR
ACCOMMODATE THE UNITED STATES FOR ITS
FREE RIDE, NOR SUIT THE SOCIALISTS,
ESPECIALLY THE AGGRESIVE NATIONAL SOCIALISTS
(NAZIS) WHOSE WAR INITIATIVES ARE A
BUSINESS VENTURE. $$$

The Noble Prize winning economist Paul Krugman is an embarrassment to the profession,
a mainstream apologist with very little
wisdom or insight. He is critical of
the Gold Standard, which he says does
not work. Krugman is correct. The
Gold Standard does not work for the
banking syndicate, which wishes
to print money for itself. Enforcement
against counterfeit and bond fraud would
come to a halt under such a standard.
The Gold Standard does not work for
the USEconomy, which lacks industry
and imports too much with no discouragement
to continue in that direction. The current
imbalances are a direct result of no
such standard in place. Krugman is a
laughing stock, who will awaken when
it is too late. The Gold Standard
does not work for the socialist state,
especially one with a strong aggression
streak for military spending and foreign
supply conquest. The irony for the USMilitary
aggression is that it is paid for largely
by the victims of the US aggression to destabilize
nations, to seek supplies, and to obstruct
deviations like trade systems outside
the USDollar. See the YouTube video
(CLICK HERE). What Obama is to
the Peace Prize, Krugman is the Economics
Prize, a total sham.

◄$$$ THE FAILURE OF THE AMERICAN PENSION SYSTEM IS GUARANTEED. BILL GROSS
OF PIMCO HAS SERVED WARNING. BOND YIELDS
ARE INADEQUATE TO SUPPLY THEIR INTEGRITY.
PAYROLL CONTRIBUTIONS ARE INADEQUATE.
FUND INVESTMENT RETURNS ARE DECLARED
IN ABSURDLY HIGH TERMS. DECEPTION ABOUNDS.
CALPERS IS WORTH WATCHING FOR ITS COURT
CASE OVER THE RIVERSIDE BANKRUPTCY. $$$

Bill Gross of PIMCO has given warning. The national pension system is on course
for failure. The Jackass has mentioned
in several past reports that the ultra-low
bond yields are insufficient to keep
the insurance and pension systems going.
The income is adequate to match the
accident awards, the damaging acts of
nature, the life payouts, and the ongoing
pension payments. Gross has called to
arms those in a battle, for survival
of the fittest. See the Business Insider
article (CLICK HERE)
and the PIMCO research report (CLICK
HERE).
The warning by Gross was direct. He
said, "The US (and global economy)
may have to get used to financially
repressive, and therefore low policy
rates, for decades to come. The last
time the US economy was this highly
levered (early 1940s), it took over
25 years of 10-year Treasury rates averaging
3% less than nominal GDP to accomplish
a beautiful deleveraging. That would
place the 10-year Treasury at close
to 1% and the policy rate at 25 basis
points until sometime around 2035! Low
yields can become high yields almost
overnight. But they should stay abnormally
low. A highly levered US and global
economy cannot deleverage beautifully
without repressive future policy rates."
The tragic fact is that the USFed
is stuck. They cannot increase rates
towards the historical mean for decades.

The Boomer Generation as a group did not save like their parents. They squandered
wealth, as they fell victim to the sponsored
asset bubbles. Their home equity has
also largely been depleted, not altogether
vanished. As they approach retirement
age, they will become totally dependent
upon federal aid, or else be beneficiary
to pensions. The two biggest state pension
funds are CALPERS in California
and the Texas State Teachers Union.
They are both structurally unsound.
CALPERS does not comprehend their plight,
or public admit it. Their portfolio
is half in US stocks, the rest divided
among bonds, private equity, and property.
Their public statement assumes a
pension fund investment return to remain
at 7.75% as far as the myopic can see.
The are delusional clowns or deceptive
liars. See the CALPERS press release
from March 2011 (CLICK HERE).

Examine the internal dynamics. CALPERS bean counters have a vested interest
to continue the fantasy on returns.
They even run thousands of simulations
to justify their assumptions. But beware
of garbage in assumptions results in
garbage out conclusions. The absurdly
high built-in return rate keeps the
California employees contributing to their fund. If the rate was made
lower in reflection of reality, then
CALPERS would be forced toward one of
two controversial policy choices.
First, they could require that members
pay more from monthly paychecks going
forward. Not a palatable request. Second,
they would have to reduce benefits and
stated projections for future pension
payments. Not a savory message. Their
officials would have feisty and contested
meetings trying to justify their investment
decisions. If CALPERS raised its contribution
rate, the result would be to reduce
the number of contributing workers.
They would engage in revolt and backlash,
the newer employees opting out into
something different. Finally, the CALPERS
plan is due to suffer from the legal
front as the bankruptcy court ruling
from the Riverside case might enforce a writedown in their assets. The trend
could be followed with other cities
that took strange loans from the pension
giant fund.

Bill Gross has incentives but they are far more honorable and justified. He
has no incentive to argue for fantasy
rates of return. He wants the funds
under his management to make money,
to thrive, and to continue with integrity.
He is motivated and angry, if truth
be told. He was deceived by the Bernanke
Fed in 2010. The Wall Street gangsters
engineered a baseless rally in USTreasury
Bonds without including Gross in the
planned meetings. The device used was
the Interest Rate Swap derivative tool.
The PIMCO funds missed out on the artificially
produced bond rally in 2011 and 2012.
Gross is not prone to delusions. He
does not believe for one instant that
the USFed can raise rates. Jim Rickards
is in this same school of thought. In
order to delay the anticipated calamity,
the USFed must keep rates very low for
quite some time. As time passes, the
investment assumptions of pension funds
all across the United
States will be
called into question. The shrinking
value of Social Security payouts will
bring more attention to the grossly
inadequate pension system. A risk is
growing for its default, but assuredly
a stealth default from price inflation
and obscene loss of purchase power.
See the TFMetals Report article (CLICK
HERE).
Thanks to the California Lawyer for
his contributions.

◄$$$ THE GLD EXCHANGE TRADED FUND IS NOW A DEBENTURE, WHICH MEANS UNSECURED
DEBT FUND. THE STATUS CHANGED IN CLANDESTINE
MANNER, AS FEW NOTICED. INVESTORS ARE
A CROSS BETWEEN DUPES AND MORONS, WITH
SOME JUICE COMMON TO THEIR DIETARY NEEDS.
$$$

The SPDR Gold Trust, also known as the GLD Exchange Traded Fund, has a new name.
The trust formally changed its name
as NewGold Debentures (GLD). The
investors do not have claims anymore
to gold bars. They are the object
of constant mockery and criticism by
the Jackass for over nine years. Perhaps
the status change to debenture will
awaken them to the con game afoot and
their victim status. At least the executives
from Wall Street and London
have come out into the open. The GLD
Fund is now officially a debt instrument
no longer backed by gold bars. Check
the definition of Debenture to see:
"A type of debt instrument that
is not secured by physical assets or
collateral. Debentures are backed only
by the general creditworthiness and
reputation of the issuer."
Financial firms, corporations, and even
governments entities are known to issue
this type of instrument (formally a
bond) in order to secure capital. By
nature, they are subject to loss, but
legally.

The GLD Fund has morphed from an investment fund of gold bars to an slush fund
set up for failure. The Wall Street
and London
bankers are in the process over the
last few months to gut the fund of its
hard asset contents. Its gold inventory
has been the subject of frequent anomalies
for inconsistent bar lists. It is almost
surely Gold in Motion from mining firm
shipments that never sits in vaults.
Finally, the GLD Fund is apparently
an unsecured shit-fund for the bagholder
investors too stupid, too lazy, and
too enamored of juice. Many investors
have used the GLD Fund to have short-term
exposure to the gold price. Maybe they
still will. The officials behind GLD
have completed the Bait & Switch
on hapless clueless people who invested
in it. All welcome the Gold Debenture,
no longer a gold-backed ETFund. What
a conjob done in the open, well done.

◄$$$ A SIZEABLE GOLD SHIPMENT DISAPPEARED FROM AN AIR FRANCE
FLIGHT TO ZURICH.
THE STORY IS ALMOST FUNNY. THE LONDON
AND SWISS BANKERS ARE SO DESPERATE FOR
GOLD THAT THEY MIGHT RESORT TO STEALING
IT IN FLIGHT. OFTEN THE BANDIT THIEVES
ARE IN CHARGE OF THE INVESTIGATION.
$$$

Expect zero followup on the story of a gold heist at 30 thousand feet. The London
bankers could easily hire MI6 to manage
the thefts. London is short on gold,
like from the German repatriation request
that must be honored. The Swiss bankers
could also hire a similar crew to manage
the project. The Swiss are short
on gold, like from stolen Allocated
Gold Accounts that must be replaced.
No investigation would occur, in the
interest of national security, when
perpetrated by the highest levels of
government or their handlers. Actual
gold production is messy and time consuming,
compared to more efficient thefts in
mid-air. The criminal deeds are occurring
more often in broad daylight thefts.
See the Russia Today news article (CLICK
HERE). It is always
good to remember the three groups immune
from law enforcement, whose criminal
cancer grows unchecked. They are the
church, the big banks, and the government
security agencies.

◄$$$ SOUTH KOREA AND MALAYSIA SIGNED US$4.7 BILLION CURRENCY SWAP DEAL.
THE BILATERAL SWAP FACILITIES ARE WORKING
TO FORM AN EFFECTIVE WORKAROUND TO USDOLLAR-BASED
TRADE SETTLEMENT. THE WEANING PROCESS
IS NEARLY COMPLETE. THE ASIAN REGION
IS UNITED IN WORKAROUNDS AND COOPERATIVE
SYSTEMS. THE USDOLLAR WILL ROT AND DIE
FROM BEING IGNORED. $$$

South Korea and Malaysia
signed a currency swap agreement worth
$4.7 billion, according to the central
bank in Seoul. The facility is designed to encourage bilateral
trade and to curb currency swings. The
pact allows the two Asian nations to
purchase and repurchase each other's
currency in amounts up to 5 trillion
SKWon (=US$4.7 bn), equal to 15 billion
Malay Ringgit. Not a small sum. The
deal is valid for three years, renewable
upon agreement. Greater flexibility
for businesses will enable local currencies
used for trades normally settled in
US dollars. The Asian workarounds
to USD-based trade are expanding. They
form a lattice work of trade flows that
bypass the US-UK control centers, cutting
them off from hegemony abuse. The hidden
message is Asian USDollar boycott.
The latest agreement is the third currency
swap deal South Korea has signed this
month, all designed to guard against
financial turmoil and encourage trade
with other emerging markets. Asia's
fourth largest economy forged currency
swap deals in October worth $10 billion
with Indonesia and worth $5.4 billion with the United Arab Emirates. Asia
is very serious about moving away from
the USDollar. Their next big decisions
will center on diversification away
from USTreasury Bonds that pollute their
banking systems, the acid creating giant
potential (imminent) holes in their
reserves. See the Channel News Asia
article (CLICK HERE).

◄$$$ THE SADDAM HUSSEIN FORTUNE OF 20 BILLION EUROS IS SUSPECTED TO BE
IN A MOSCOW WAREHOUSE. IT HAS BEEN HANDLED AND DISPOSED OF, BUT SECRETLY.
THE JACKASS GUESSES IT SATISFIED AN
OLD IRAQI LOAN TO THE KREMLIN. $$$

A cargo of 20 billion Euros in cash (=US$26 bn) has sat
unclaimed at a Moscow
airport for six years collecting dust,
possibly mold. Suspicions have circulated
that it could be the secret fortune
of Saddam Hussein. The stash has been kept under high
security in a cargo depot, located on
200 wooden pallets each worth 100 million
Euros. For the longest time, Russian
customs has demanded the real owners
of the booty present themselves to claim
the fortune. Several bogus and half-baked
attempts have been made to obtain it.
However, no party has satisfied the
authorities of being the rightful owner
in claim. The Moskovsky Komsomolets
newspaper raised the possibility that
is was the private stash, money absonded
by Saddam Hussein. The cash hoard is
all in 100 Euro notes. The shipment
was flown to Sheremetyevo
Airport in
Moscow from Frankfurt
in August 2007, frozen at the site ever
since unclaimed. Russian sources
say the authorities have failed to untangle
the identity of the hoard's ultimate
owner, which strangely arrived at the
airport without a specified recipient
on the consignment. See the UK Daily
Mail article (CLICK HERE).
When asked, The Voice said the cash
stockpile has been disposed of by Russian
officials. But he would share details.
It might have been used to settle some
old Iraqi debts with the Kremlin related
to numerous energy deals, perhaps by
creation of a new long-term loan to
perpetuity until the owner is definitively
verified.

◄$$$ TEXAS DEFIANTLY DECLARED GOLD & SILVER AS MONEY IN A REVERSAL OF
THE TAX ON COIN SALES. $$$

Texas has formally eliminated the sales
tax on precious metals coins. The landmark
legislation went into effect on October
1st in Texas. The measure completely eliminates all taxation of precious metals
on the grounds that Gold & Silver
are considered a currency. The state
movements continue, not exactly gathering
much momentum, but they will not go
away. Gold & Silver are established
as money in the Constitution. See the
Money Web article (CLICK HERE).

## CHINESE FLEXES ITS MUSCLES

◄$$$ NOTE THE YAMASHITA STORY. KAREN HUDES CITED 170,000 TONS OF GOLD
BULLION IN HAWAII. THIS STORY BEARS COMMENT. DEPLOYMENT OF GOLD CAN BE DONE FOR
MANY PURPOSES, EVEN TO ALTER THE GEOPOLITICAL
BALANCE OF POWER. HIGH VOLUME OF GOLD
DOES NOT MEAN A LOWER FUTURE PRICE.
THE WHITE DRAGON FAMILY GUTTED LONDON
OF ITS GOLD IN A COMPLEX MANEUVER. THE
GOLD COULD BE TAPPED TO FORM THE GOLD
TRADE CENTRAL BANK CORE, AS THE BRICS
NATIONS AND G-20 NATIONS FORM A NEW
GLOBAL TRADE SETTLEMENT SYSTEM. $$$

Karen Hudes recently claimed that an abundance of gold exists. She claimed a
bank in Hawaii has approximately 170,000 tons of gold bullion in storage, equal
to nearly 68 years of world mine output.
The hoard represents several centuries
of ancient Chinese family wealth accumulation.
See the YouTube vid eo (CLICK HERE). Many naive observers
believe the abundance of ancient gold
will keep the gold price suppressed.
Not at all, since it depends entirely
how it is used. Sure, if dumped on the
market, but the usage to date has been
the opposite. A tremendous hoard of
gold exists, recently brought to bear
on geopolitics in the last two years.
The large gold volumes do NOT translate
into a burden of heavy sales and fast
falling price. The Jackass has three
sources that confirm the White Dragons
have $100 trillion in gold bars.
They are an extension of a large group
of ancient Chinese families. They have
awakened, or else the great plan has
turned a page that permits China
to take its place in the next generation.
Their gold hoard is enough to fill five
football fields of pallettes at chest
high. It is called the Yamashita Gold.

The White Dragon gold was stolen by Japan
over many centuries from China
in frequent raids, regional domination,
even streaks of genocide. The gold hoard
was hidden in the Philippines
during World War II. A rough number
on the volume for WD gold is 20 times
Fort Knox. The 8500
tons once in Fort
Knox Kentucky has
been vacated, a euphemism for pilfered
by the gang led by Clinton, Rubin, and
Papa Bush. The Voice tipped the
Jackass off in late 2011 that a powerful
Eastern Entity finally had at its disposal
tremendous wealth, but offered few details.
He said they took $50 billion on loan
in cash against the gold to fund a major
geopolitical project that would change
the global power structure. They
went hunting for gold in London. From March to July 2012, they drained 5000 tons of London
gold. Further details were not directly
told, but inferred conclusions were
confirmed in brief but clear terms.
The Voice hinted that my conjecture
was correct, on how the London
criminal banks had taken the Chinese
WD gold and improperly put it to use
as collateral on failed FX trades using
leverage. They illegally rehypothecated
ancient Chinese gold. In turn, the WD
families demanded the return of their
improperly used gold bars, since the
margin calls were huge. The London bankers could not simply supply cash to
meet the margin calls, since the margin
was posted using Allocated Gold on Account
that did not belong to them. London bankers were caught red-handed. The margin call required the
London
banks to relinquish gold in replenished
form, causing a major drain. In four
short months, London
shed 60% of what Fort Knox once held.

Therefore, conclude the $50 billion in loans off gold
collateral did not harm the gold price,
but rather push the London bankers to the cliff's edge. Its deployment gutted London and weakened the US-UK Axis of Fascism.
It started the process of gold heading
East, which today continues as the Shanghai
gold arbitrage. Reports indicate from
Hudes that the White Dragon gold is
being stored in Hawaii.
My guess is Hawaii
will not remain in the US union for many more years, nor will Alaska. As footnote, listen to the facts shared
by Hudes, but give little weight to
her assessment of a what constitutes
a great investment. One is left to wonder
if she works to keep her life free from
attack by making silly conclusions like
Gold is not good investment. As with
Greenspan, listen to the topics and
gather the information, but ignore the
conclusions.

Some analysts have made the critical error of jumping to the conclusion that
gold is at risk. In reality, the
USDollar is at extreme risk from severe
debasement via QE run by the USFed.
A sudden overnight USDollar devaluation
could result in an overnight 100% rise
in the Price of Gold. The owners
of the enormous gold hoard are making
demands, like the New Global Lords.
More likely, the emergence of the Gold
Trade Standard will be created with
several important devices and platforms.
Imagine the Gold Trade Central Bank
being set up using several thousand
White Dragon tons of gold bullion. The
WD officials might take USTBonds and
force a debt default, then plow under
the USGovt. The Jackass has a diametrically
opposite viewpoint on the WD Gold. It
will be used to kill the USDollar, to
force a bust in the USTBond bubble,
and to usher in the new age. They
will ensure the new Price of Gold will
be on the order of $7000 to $10,000
per ounce. It has already been decided
upon, according to The Voice, who claims
the entire multi-step project has made
great progress and its completion is
underway.

◄$$$ CHINA IS EXPLOITING TO THE EXTREME THE GOLD CONDUIT
FROM LONDON AND
ZURICH AS THEY REALIZE A TREMENDOUS OUTFLOW OF GOLD. NON-STANDARD METHODS
ARE BEING USED IN THE LOGISTICS. THE
PARADIGM SHIFT ACCELERATES TOWARD CLIMAX.
THE CHINESE OWN MUCH MORE GOLD THAN
REPORTED. THE NEXT GLOBAL CHAPTER IS
NEAR. THE WESTERN GOLD CENTERS ARE TO
BE PHASED OUT. $$$

As reported last month, the gold exports from the UK
to Switzerland jumped from 85%
tons to 1016 tonnes in the first eight
months of 2013. That is a 12-fold increase
on an annual basis. Huge red flag!!
Some bullion market watchers attribute
the huge increase to withdrawals or
sales from the many Exchange Traded
Funds based in London,
a veritable pillage and betrayal of
their investors. The other half of the
story is a massive flow to Switzerland.
The intrepid Koos Jansen reports the
export of nearly 500 tons of gold to
Hong Kong through July 2013. In turn, Hong Kong
has exported over 1200 tonnes of gold
to the Chinese mainland over the same
period. Gold is on the move, being mobilized
in a huge way, as the geopolitical power
center shifts. Switzerland
and Hong Kong are serving as a conduit
of Western gold en route to China, probably to fill Chinese
central bank reserves. See the USA Gold
article (CLICK HERE).

More to the story as it unfolds and develops, a reliable source has revealed.
Details are sketchy but are coming together
in knitted form. The volume of precious
metal moving East is an order of magnitude
greater than what is commonly known
even to the gold community. The enormous
drain of London
gold from April to July 2012 has continued.
The shipments are usually off the radar,
not using the typical cargo aircraft,
as in not Brinks. The destinations are
both Hong Kong and Mainland China. The logistics team managing these lifts
are professionals with long experience
in such operations. They honor discretion
and privacy. The Chinese are not liberal
in their trust of the Caucasian people
generally, even as hired agents. The
shipping project is complex and filled
with risk. Two conclusions can be arrived
at with growing certainty. This inside
word corresponds to reports that China has accumulated
over 15,000 tons of gold in preparation
for the next chapter beyond the King
Dollar specter. It will feature Gold
Trade Settlement and and new Eastern
Gold Central Bank. Think $5000 gold
price, then $7000, later higher. Secondly,
the New York and
London and Swiss gold centers of power are being
phased out, their golden lifeblood drained.
The next news in domino form could be
a momentous reform in the COMEX for
its gold contracts. The Cash &
Carry feature could happen soon, with
gold futures contracts no longer offered,
as in the end to gold price discovery
in New York and London.

◄$$$ AUSSIE TRADE DEALS WITH CHINA AND OTHER ASIAN
GIANTS ARE BEING PURSUED. EFFORTS ARE
BEING MADE ON A SERIES OF BILATERAL
AGREEMENTS ON FREE TRADE. $$$

Australian Prime Minister Tony Abbott has set a working
target of 12 months to sign free trade
agreements with Australia's three biggest
export markets. They are China,
Japan,
and South Korea. At the East Asia Summit in Brunei,
subsequent to the APEC summit in Bali,
Abbott admitted a meandering on progress
since 2005 to make the trade deals final,
without resolution yet. He is confident
of mutually satisfactory completion,
given the target goals. Abbott said,
"All of our significant trading
partners are very conscious of the benefits
to both of us of freer trade. Everyone
accepts that in the end, everyone is
better off the freer trade can be. All
of us would prefer a swift and satisfactory
conclusion of the Doha
round, but if you cannot get a multi-lateral
agreement, better to get a pluri-lateral
agreement. And if you cannot get a pluri-lateral
agreement, better to have a series of
bilateral agreements. It is better to
take small steps in the right direction
in the absence of large steps. My philosophy
is that if you cannot get what you want
today, take what you can get and go
for the rest tomorrow. In the end, it
all comes down to jobs: jobs for Australians.
That is what these meetings are all
about. If we have more trade, we have
more jobs, and if we continue to have
strategic stability in our region, we
will have more trade."

Details on agenda were shared. The APEC summit in Bali had focused on trade,
while the East Asia Summit in Brunei had focused on security.
Abbott went on to add many comments
about friendly relations with Japan
and China. He mentioned a desire
to develop better relations with India. He commented upon past wounds with Japan
during the war, and conflicts over whale
harvesting. Then he praised Japan for its political pluralism.
See The Australian article (CLICK HERE).

◄$$$ NEW ZEALAND HAS OPENED THE
DOOR TO CHINESE COLONIZATION. PROPERTY
PRICES ARE IN FAST RISE, BUBBLE MODE.
NO IMMIGRATION QUOTAS ARE IN EFFECT.
HALF THE CAPITAL OF AUCKLAND IS POPULATED BY CHINESE. $$$

The Auckland population in New
Zealand has 48%
Chinese. They are buying up houses in
Auckland at 30% above valuation at auctions. Word has it that most
Chinese migrating to NZ and students
who arrive to study at NZ universities
are all beneficiaries of the Chinese
Govt in some form indirectly. Contact
AngieJ has a friend who used to attend
auctions and bid on houses. But he does
not waste his time anymore. The auction
rooms are flooded with Chinese buyers,
who over-bid. A story made the rounds
how 32 houses were sold to one Chinese
buyer, with just a phone call to a single
agent. The Chinese Govt has many
routes to deploy USDollars in the newfound
Indirect Exchange. They purchase assets
large and small with USTreasury Bonds,
here as third party buyers in the property
market in Auckland.
The natives will gradually be pushed
out to locations the Chinese find undesirable.
Witness colonization of the NZ capital
city.

Real estate agents are selling houses in droves. Even the less skilled and dumb
ones, as AngieJ described. However,
mortgage brokers are hurting, due to
more strict lending criteria that require
buyers to post 20% deposit in down payment.
It could be that New Zealand has intentionally
tightened its lending criteria in order
to shut out its own citizens, while
opening the side door to Chinese buyers
loaded with cash. AngieJ mentioned that
the big buzz for some years now was
that the bank cartel planned to exploit
New
Zealand first as
the official guinea pig for establishing
Chinese colonies. Incredibly, the
NZGovt has reassured the public that
the rise of house prices has nothing
to do with the Chinese. So their credibility
is fast vanishing. The impact is nasty
even to those natives who wish to exploit
the higher prices. Her friend sold their
house for NZ$1.5 million, and one month
later was unable to buy back into the
market on home loan qualification. The
competing Chinese Kiwis have become
dominant, shutting out the natives of
their own housing market. Witness
the inner dynamics of active colonization
and displacement, meaning removal of
the natives on a gradual basis. She
surmised in conclusion that the NZ urban
housing bubble would not go bust until
the USTBond market collapses. The Chinese
are buying up NZ capital homes at a
terrifying speed before this happens.

It seems like the Chinese are colonizing NZ using USDollar reserves. The mismatch
is that the USTBonds will be devalued
later. But until then, they are pushing
up the NZ housing market. A big gap
down comes in a few years. The NZGovt
must be encouraging the process, paid
off in the backrooms. They are not imposing
any immigration quotas. At least New Zealand is located close to New Guinea, for what that
is worth, if they are guinea pigs. The
land is rich and bountiful. The NZEconomy
is a massive supplier of milk, wool,
and lamb meat, with enormous supply
of fresh water. The nation could supply
ample fishing industry and a naval base
to China
in the long run. Always keep in mind
that NZ is supplying a steady stream
of passports to the same immigrant predators.
Thanks to AngieJ for her contribution.

◄$$$ THE START OF CHINA'S GOLD MINER BUYING SPREE
COULD BE NIGH. THE SPREAD TRADE TO GO
LONG GOLD METAL BUT SHORT THE MINING
STOCKS COULD BE CLOSE TO AN END. AT
ROCK BOTTOM PRICES, THE MINING SHARES
ARE APPARENTLY ON THE CHINESE RADAR.
THEY BEGIN WITH A KNOCK AT THE IVANHOE
DOOR. THE JACKASS BELIEVES THE MINING
STOCKS WILL REMAIN DOWNTRODDEN, PICKED
UP FOR PENNIES LATER. $$$

In October of 2012, Hugh Hendry of Eclectica Asset Mgmt proposed a very simple
investment thesis: long gold metal,
short gold mining equities. The
GDX fund of scattered mining stocks
is perfect, since Goldman Sachs has
a habit of sitting on the fund for basic
suppression functional delight. Hendry
pointed out the risk of confiscation
for mine properties, a longstanding
Jackass concern. He chooses gold ETFunds,
gold futures, or gold bullion. His
strategy has made a substantial double
digit return even while the COMEX gold
price was flat or falling. It is unpopular,
since it rides the GSax downslope wave
on a short gold surfboard. The time
is coming to an end for the trade though,
following a 50% mine sector selloff.

The gold miner stocks have become attractive to those with deep pockets filled
with reserve fiat paper like China, anxious to rid themselves
of the toxic USD scrilla. Last month,
The largest Chinese gold company, China
National Gold Group Corp, began talked
with Ivanhoe Mines about buying a stake
in the company, or one of their assets.
See the Zero Hedge article (CLICK HERE)
and Wall Street Journal article (CLICK
HERE).
The Hendry strategy is consistent with
the aversion to mining stocks espoused
by the Jackass since early 2008. Although
China
might pursue more mining firms in acquisition,
my belief is the sector will remain
suppressed, and bought up for pennies
by either China or large global mining
firms whose output is curtailed. It
would not be a surprise if Barrick went
wild with narco money in the acquisition
trail.

◄$$$ AN AMBUSH TO OBSTRUCT A MINING FIRM ACQUISITION COULD HAVE TAKEN
PLACE IN SINGAPORE. A HARDBALL TACTIC MIGHT HAVE BEEN USED
TO TAKE DOWN THE SHARE VALUE IN ACQUIRING
FIRMS LIKE LIONGOLD IN ORDER TO PREVENT
THEM FROM TAKING OUT CHEAPER SOUTH AMERICAN
ASSETS. THEY HAD PURSUED MINERA IN A
TAKEOUT. JUST A THEORY. $$$

The Singapore Exchange suspended Blumont, LionGold, and Asiasons after their
share prices plunged. The SGX is the
largest SouthEast Asian bourse. The
declines were impressive. Blumont fell
56%, LionGold fell 42%, and Asiansons
fell 62%. Trading was halted for their
shares, despite any formal circuit breakers
being in place. The trio have been on
an acquisition tear. Last month, Blumont
agreed to invest A$116 million in Australia's Discovery Metals
Ltd in a deal that could give it control
of the copper producer. The Blumont
shares had risen over 11-fold in the
current 2013 calendar year, making their
shares richly valued currency useful
for buyouts. The SGX officials have
been prompted to investigate the stock
surge, which likely added to the decline.
LionGold (symbol: LIGO) was in talks
to buy as many as three gold mining
assets. LionGold jumped 46% in August
alone. They are the largest holding
in junior index GDXJ at about 5% weight.
This company has only been around for
about a year and a half, already the
largest holding in GDXJ in a suspicious
phoenix rise. Last month Asiasons bought
a stake in US-based oil & gas producer
Black Elk Energy Offshore Operations
LLC. Asiasons reached its highest ever
closing price on October 1st. The three
stocks might be Chinese fronts, and
if so, a crafty maneuver.

The targets are many. Raw material producers and energy companies are the worst
performing stocks on the MSCI Asia Pacific
Index this year. Gold miner Newcrest
Mining (NCM) tumbled 50% so far this
year, the object of a big A$6 billion
writedown on its assets in June. Whitehaven
Coal Ltd dropped 46%, leading losses
among energy producers. Next consider
a motive and hidden hand. These three
companies were prepared to acquire assets.
Their shares plunged and were halted.
Perhaps they were smashed in order to
wipe out their capability to acquire
assets. LionsGold was busy, ready
to acquire Minera out of South
America. It is pure speculation. It
is possible the three companies were
discovered as fronts for Chinese money.
The Chinese might have been bidding
up the penny stocks for acquisition
purposes, leverage of a different sort.
With an inflated stock they could use
its shares to acquire cheap mining assets
in a new sphere of influence, South
America. The Andes form the longest mountain range in the world, incredibly rich
in mineral resources. Perhaps the Western
bank cartel got wind of the pattern
and made some phone calls, then conducted
some GSax styled naked shorting of their
stocks. It is not conceivable that the
Anglo Powerz would permit the Chinese
to go on endless shopping sprees to
buy cheap mining assets so close to
home. See the Bloomberg article (CLICK
HERE).
As footnote, the speculative argument
is not a Jackass idea, but the source
cannot be tracked. Too much information
directed to the valued INBOX.

◄$$$ SPROTT JOINED FORCES WITH LARGEST CHINESE MINING COMPANY IN $110
MILLION DEAL TO BEGIN AN INVESTMENT
FUND. $$$

Sprott Asset Mgmt has announced a $110 million deal to launch a new offshore
fund with Zijin Mining Group, the largest
Chinese mining company. The deal calls
for Sprott to assist Zijin with acquisitions
of top metals mining companies. The
targets are to be publically listed
equity and debt instruments of gold,
other precious metals and copper mining
companies. The announcement has potential
positive implications for junior and
mid-cap mining shares, like to cushion
their steady decline. More importantly,
China
is pursuing gold production capacity.China wants to own gold mine output in a strong
steady stream. All relevant regulatory
approvals have been received in Canada
and the Peoples Republic of China.
The Fund has been initially seeded with
US$100 million from Zijin and US$10
million from Sprott. The conglomerate
Zijin Mining Group Company Limited is
the largest gold producer in China,
and the second largest mined copper
producer in China. It has listings on both the Hong Kong and
Shanghai
stock exchanges. The combination of
Zijin technical strengths and Sprott
investment expertise will prove to be
formidable. The Fund will be co-managed
by affiliates of Sprott and Zijin. See
the Silver Doctors article (CLICK HERE).

Some oddball analysts have stated that Eric Sprott plans to suppress mining
stocks in the strategic move, that he
is selling out. Doubtful. The Zijin
acquisitions will be for mining firms,
probably at very cheap prices, while
the nasty suppression is being done
by hedge funds, guys like Hendry, Goldman
Sachs, and the market. The small fry
mining firms are in big trouble for
numerous reasons, like running out of
cash, confiscation by foreign governments,
worker strikes, and more. It is unlikely
that Zijin will bid up mining stocks.
They will bottom feed instead.

◄$$$ THE SHANGHAI FREE TRADE ZONE IS LAUNCHED. THE SHANGHAI ECONOMIC HUB IS THE WORLD'S SECOND BIGGEST
ECONOMY. IT PREPARES TO TEST LONG AWAITED
ECONOMIC REFORMS. NUMEROUS LURES COME
WITH A FREE TRADE ZONE TO ENCOURAGE
BUSINESS AND CAPITAL FORMATION. THINK
CHECKMATE FOR THE ANGLOS, SINCE CORPORATE
PRIVACY WILL BE HONORED IN STRICT TERMS.
$$$

The Voice wrote an email message with a single word, 'Checkmate' on it. He reminds
the key factors. Nobody can touch
offshore operators in China.
The officials in Beijing
will not roll over to any foreign pressure
to reveal identities of tax corporations.
Investment will pour in over time. The
entire region will be secure.Shanghai
is expected to launch the mainland's
first free trade zone (FTZ) soon, reinforcing
its bid to become a global financial
center. Plans within the free trade
zone are to facilitate cross-border
commodity and capital flows. In such
a zone, goods can be imported, processed,
and re-exported without the intervention
of customs authorities, hence the encouragement
to attract capital. A major item is
to come. Beijing would allow full
convertibility of the Yuan currency
in the pending FTZ, a move to help Shanghai in fast track transformation. Economists believe a FTZ
in Shanghai
could firm the actual implementation
of the Yuan's full convertibility. It
is expected to help Shanghai
to compete against Hong Kong as the established financial, trading, and shipping center
in the region.

The Shanghai free trade zone is large. It covers 29 sqkm (=11 sqmiles).
Restrictions on foreign investment will
be eased inside the area, and interest
rates will be set by markets. The tightly
controlled Yuan currency will be swapped
freely for other currencies, according
to China's State Council. In
all, 18 sectors ranging from finance
to shipping will have regulations loosened
in the zone. Their aim is to spur
trade by reducing costs via lower taxation,
less bureaucracy, liberal labor laws,
relaxed environmental laws, cheaper
electricity, extensive research grants,
no rental cost, and more. In effect,
subsidies are realized along with pseudo
current discount for the corporations.
Every trick in the playbook is being
done by China to increase competitiveness
and to form a global financial center.

The giant city faces some competition from Qianhai, an experimental financial
zone at Shenzhen within the Guangdong province. It serves as a testing ground
for freer Yuan usage and capital account
convertibility. The launch of a free
trade zone in Shanghai
is consistent with Beijing
goals to make an operational plan for
the full convertibility of the Yuan
before the end of 2013. Next would be
the liberalization of their Capital
Account. See the BBC article (CLICK
HERE) and the older South
China Morning Post article (CLICK HERE).

◄$$$ VENEZUELA AND CHINA SIGNED MULTI-BILLION DOLLAR DEALS CENTERED
ON ENERGY AND AGRICULTURE. RELATIONS
ARE FIRMING. THUS THE MOTIVE FOR THE
USGOVT TO BLOCK VENEZUELAN PRESIDENT
ON AIR SPACE IN PETTY STYLE. $$$

Chinese President Xi Jinping and Venezuelan President Nicolas Maduro held talks
at the Great Hall of the People in Beijing
in late September. The nations strengthened
their ties and forged new deals in continuation
of the Chavez relations. The oil giant
Petroleo de Venezuela (PDVSA) signed
a $1.4 billion deal with China Petrochemical
Corp to develop the Junin heavy oil
bloc of heavy crude oil in Venezuela,
which will produce 200,000 barrels per
day. It is complex heavy crude. The
China Devmt Bank announced a $5 billion
loan for broad development in Venezuela. The line of credit
will invest in private homes, agriculture,
transportation, industry, roads, electricity,
mining, health, science, and technology,
according to Maduro. The repayments
will come from oil revenue. The Export-Import
Bank of China will lend Pequiven (Venezuela's state petrochemicals
company) $390 million for the construction
of a seaport. China will clearly continue
to tap the nation's energy output for
secure supply. Venezuela has also secured
funding from Chinese banks for a mining
survey around the country. Further cooperation
will be given by China's
CITIC Group to move forward with gold
mining projects in the important Las
Cristinas deposits in Venezuela.
Maduro was involved in a diplomatic
dispute with the USGovt when the Venezuelan
president said his jet was banned from
flying over Puerto Rico on his way to
China. How petty! Rising above
it, Maduro encouraged Chinese businesses
to play a role in Venezuelan special
economic zones. After the talks, Xi
and Maduro witnessed the signing of
12 cooperation agreements on energy,
education, agriculture, and construction.
China
slowly encircles the United
States. See the
BRICS Post article (CLICK HERE).

◄$$$ CHINA HAS SIGNED CONTRACTS TO LEASE FARMLAND IN
UKRAINE. PAST FARMLAND COMMISSIONS
HAVE BEEN SIGNED IN SOUTH
AMERICA. THE EMERGING GIANT IS SECURING
FOOD SUPPLIES. $$$

China will lease 3 million hectares (=7.4
million acres) of Ukrainian farmland
for the next 50 years, as it strives
to keep up with its rising food demand.
The official Xinjiang Production
& Construction Corp has signed an
agreement with Ukrainian agricultural
firm KSG Agro, which would see Ukraine provide 100,000 hectares to China. The land volume
would eventually rise to 3 million hectares.
The crops produced would be bound for
two Chinese state owned grain conglomerates
at preferred prices. China
has a major struggle to feed its people.
It accounts for 20% of the global population
but controls only 9% of its land. Demand
for food is rising as incomes have risen
during the last decade. China must consistently seek new overseas agricultural
partnerships to ensure its food supplies.
Other areas across the globe have
been commissioned for farmland. China has made substantial agricultural investments
in South America.
The Beidahuang Corp acquired 234,000
hectares to grow soya bean and corn
in Argentina. Chongqing Grain
paid US$375 million for soya bean plantations
in Brazil and US$1.2 billion for land in Argentina to grow soya beans,
corn, and cotton. See the Foreign Policy
Forum article (CLICK HERE).

## GOLD EXODUS & ARBITRAGE

◄$$$ THE HIDDEN SECRETS OF MONEY REVEAL A PATH TO MARKEDLY HIGHER GOLD
& SILVER PRICES. THE DOLLAR CRISIS
OPENS A GRAND GOLDEN OPPORTUNITY.
SOME KEY GLOBAL MOVEMENTS AWAY FROM
THE USDOLLAR SYSTEM ASSURE THE RISE
IN THE PRICE OF GOLD. AMAZINGLY TO THE
UNSCHOOLED, OBVIOUS TO THE GOLD STUDENTS,
MAJOR CURRENCIES LOST OVER 75% VALUE
VERSUS GOLD SINCE YEAR 2000. $$$

Mike Maloney states his case for why the Gold & Silver prices are poised
to rise dramatically. The greatly
expanded money supply assures much higher
precious metals prices in the next few
years. The solution to the current ongoing
persistent crisis is a return to the
Gold Standard, along with a movement
to re-establish free markets, free banks,
free people, and sound money. Gold is
a study of money supply and purchasing
power, against a backdrop of currency
debasement. Wealth is never lost or
destroyed, merely transfered into other
forms. However, capital can be destroyed
and is being destroyed by the current
USFed monetary policy. Maloney expects
the world to have a new monetary system
in this decade. Whether it is from
nations repatriating their gold supplies,
or creating bilateral trade agreements
outside the USDollar sphere, these events
are all deemed to be what he calls Golden
Nails in the coffin of the USDollar
system of trade and banking that
is coming to an end. See the YouTube
video (CLICK HERE).

The major currencies of the world have lost over 75%
of their value versus Gold since year
2000, just since the turn of the new century.
The race to debase is on, a global gathering
storm. A big picture view of how Silver
& Gold Bullion have performed versus
120 different fiat currencies in a little
more than a decade is shown in a table
for the referenced article. In the
21st Century, fiat currency has lost
an average of 78.16% of its value to
Silver. The distinction for which
paper currency is the biggest loser
to Silver thus far is the Congolese
Franc. It has lost 99.89% of its value
to the white precious monetary metal.
The lost value is rather consistent.
In the future years, the gains for Silver
will outshine the gains in Gold. See
the Gold Silver article (CLICK HERE).
And Wall Street says Gold is a dead
asset! It is store of wealth and valuable
ballast in the liquidity seas.

◄$$$ CURRENCY WAR AND MASS EXODUS OF GOLD (FROM WEST SHIPPED TO EAST)
COULD POINT TO A SUDDEN EXTREME REVALUATION
OF GOLD MULTIPLES HIGHER, SILVER TOO.
THE EMERGENCE OF THE BRICS NATIONS AS
DOMINANT IN COMMERCE AND FINAL DEMAND
WILL CHANGE THE GLOBAL EQUATION. REFLECTION
IN ALTERED TRADE SETTLEMENT COMBINES
WITH GERMAN REPATRIATION FALLOUT TO
MAKE FOR A GRAND SHIFT IN GEOPOLITICAL
BALANCES. THE BENEFICIARY WILL BE GOLD,
WHOSE ROLE IN THE CYPRUS BAILOUT IS CURIOUSLY POSITIVE. THE BRICS
NATIONS ARE PUSHING FOR ALTERNATIVES,
PERHAPS A BROKERED DEAL IN PROGRESS.
THE POSSIBILITY OF AN OVERNIGHT GOLD
REVALUATION UPWARD IN QUANTUM JUMP IS
RISING. $$$

Begin with some illustrative Cyprus bail-in math.
In all, 10 tons of Cypriot gold were
shipped to the overlords in return for
$10 billion from European Stability
Mechanism (ESM) and the IMF. The amount
would suggest that physical gold collateral
is worth $31,250 per oz in the current
crisis. The market surely does not
see such value in the corrupted COMEX
& LBMA prices. A rebirth in the
gold bullion bank management crisis
occurred when the Bundesbank demanded
the repatriation of German gold, obviously
refused since it is gone. A deal was
cut, a war in Mali was waged, and some cockeyed
propaganda about a seven year deferral
was announced on loudspeakers. Germany
disrupted the world Gold market. Such
are some of the Western marquee events.
On the Eastern side, global physical
trading patterns have reached critical
tipping points. Emerging markets have
arisen to form dominant players in final
demand of some goods & services,
as well as production, even oil demand.

The major agent of change, the big rub, is the lost interest
by the East in maintaining the status
quo. They do not wish to use the Western
paper with its toxic bonds and Western
banks with its harsh rules. As Jesse's
Correspondent concluded, "They
appear to be acutely aware of the fact
that the Anglo-American exorbitant
privilege has been funded directly by
their [Eastern] sweat equity. Or
to put it more bluntly, why would the
BRICs want to settle their trades between
themselves in dollars so that they can
help to fund their own military encirclement
that has consistently acted against
their interests? The most likely scenario
is that physical gold goes up to a really,
really big number in some sort of global
currency system reset, thereby completely
collateralizing most of the sovereign
debt out there." The only problem
with that last thought is Western banks
shed all their gold.

Think ultimate abuse of credit card to harness aggression toward the creditors
themselves. Russia is suspected to be
attempting a brokered deal toward a
gradual currency compromise using their
chairman role of the G-20 this year.
The Anglo-Americans are resisting, but
primarily for better terms of surrender
in what the Jackass has called the Monetary
War. The US Financial Army wishes for
granted time to permit their Generals
a safe retreat. They are bargaining
for time to allow their favorite banks
to square themselves in the face of
the change, better described as a Paradigm
Shift. During the climax phase, the
Correspondent expects the gold mining
stocks to rise significantly, but less
than the Gold price. Governments
will effectively seize them and turn
them into public utilities, whose
annual dividends will be set equal to
a big percentage of current miner share
prices. See the Cafe Americain article
(CLICK HERE).
Some students regard the Jesse Correspondent
opinion to rhyme closely with the FOA/FOFOA
theory, as in Friend of Another. The
positive shock to Gold, in a possible
overnight revaluation, is increasingly
looking like to occur sooner rather
than later.

◄$$$ A COMMENT ABOUT INDIA ON THE GROUND, WHICH
IS PLANNING TO TAKES FIRST STEPS IN
PRIVATE GOLD CONFISCATION. A VIOLENT
REACTION WOULD COME. GOLD DEMAND WILL
RESUME IN INDIA. $$$

Comments from EuroRaj, who has family in India
and makes frequent trips to visit his
mother and his wife's mother. They make
long stays which enable close looks.
He knows the Indian Economy very well,
along with the Indian banking system
and its financial structure, even its
customs. He follows their gold market
with a very close eye. He wrote, "If
they try, the Indian people will tear
their officials from limb to limb. They
will threaten and bribe the temple guardians
to authorize storage of their gold at
the central bank for safety & security
reasons while offering to pay interest.
A hefty portion of the proceeds would
be funneled into the guardians at Swiss
bank accounts. They are capable
of misdeeds like to stage a massive
theft of the gold via underground tunnels,
also with threats combined with big
bribes for the guardians to look the
other way. Indians are also very religious
minded people and whether logical or
not taking temple gold which belongs
to the gods and giving it to a bank
or government could be considered sacrilegious
and could invite bad karma."
The Indian people, unlike the Americans,
are not passive and have no hesitation
in attacking their leaders, even setting
officials afire on a pyre or tossing
them off palace balconies. An update
on India. Gold demand in the
fourth quarter is expected to increase
by 15% to 300 tons, due to good agricultural
season and a plethora of festival days.
See the Reuters article (CLICK HERE).

◄$$$ INDIANS ARE ACTIVELY ARBITRAGING GOLD, JUST LIKE IN SHANGHAI.
THE PHYSICAL DEMAND REMAINS STRONG,
WHICH SUPPORTS THE ARBITRAGE. THE MUMBAI
PREMIUM OVER THE NEW
YORK GOLD PRICE HAS BEEN GROWING STEADILY,
THUS CREATING THE OPPORTUNITY.
A GREAT DRAIN IS IN PROGRESS, THE NEW
YORK GOLD HEADS EAST TO INDIA.
$$$

The global price structure in the Gold market has created a growing opportunity
to exploit higher Indian gold prices.
The arbitrage factor results in a
Second Silk Road in gold, the Shanghai road with a pit stop in India. As background,
since the Indian Rupee currency price
is set by the FOREX for seeking equilibrium,
it should not be a factor. The Indian
Gold price is set by the global price,
which should eliminate any disparity
from the New York price. However, strong extreme factors
are present, as in import duties and
bank bans on gold product sales. The
ongoing differential between Mumbai
and New York on the Gold price opens up the possibility of arbitrage.
Gold is purchased on the cheap in New York, in the heart of the corruption. Gold
is delivered for sale at the premium
value in Mumbai. Thus supply meets the
great Indian demand, while the corrupt
land in the United States loses its gold
held in inventory. The chart shows higher
Indian prices in USDollar terms, courtesy
of the Indian Govt. For those with trading
acumen and delivery logistics, with
high security, these differences on
a daily basis are arbitrage opportunities
for tremendous profit. To the passive
observer, it means the Gold price will
continue to feel upward pressure while
New York relinquishes its gold. In the process, New
York will risk shutdown of the COMEX
market itself, when gold inventory is
critically low.

Timing notes. From January to June 2012,
the European financial crisis was in
full swing. During that time, the Indian
central bank raised the duty on gold
purchases from 2% to 4%. Between July
2012 and December of 2012, the Mumbai
Gold premium ran between 3% and 5%.
From January to June 2013, imports were
squeezed hard. Duties on gold buys were
hiked from 4% to 8%, while the Reserve
Bank of India
banned gold product sales through their
banks. The price premium for Mumbai
Gold was between 10% and 12% over the
New York Gold price. In the last few
months, the Mumbai gold premium has
been steady at 13%. See the Economic
Times of India article (CLICK HERE).

◄$$$ THE MOSCOW EXCHANGE PLANS TO INTRODUCE GOLD & SILVER TRADING SO AS
TO BROADEN AVAILABILITY. THE PRECIOUS
METALS WILL BE DONE ON A CASH BASIS,
SETTLED THE NEXT DAY. IT WILL JOIN THE
STOCK AND CURRENCY MARKETS FOR GOLD
& SILVER LISTING AND TRADING HOURS,
IN AN UNUSUAL ARRANGEMENT. THE POTENTIAL
FOR ARBITRAGE IS OBVIOUS, JUST LIKE
IN SHANGHAI. $$$

The Moscow Exchange will introduce trading of Gold & Silver as early as
October. They wish to increase access
and to reduce transaction costs. The
exchange will make price quotes in Russian
Rubles per gram, with minimum trades
starting at 10 grams of Gold and 100
grams of Silver. Platinum and palladium
contracts will start trading in the
first half of 2014. Among emerging market
nations, Russia
is the second largest producer of gold
after China. Russia has a different system. Most metals trading
in the country takes place via the over-the-counter
(OTC) market, dominated by their biggest
banks like OAO Sberbank. The smaller
players endure higher costs. Lenders
like Absolut Bank ZAO in Moscow take on higher costs and risks because they turn to the market
makers to close positions, a limitation.
Ivan Fomenko is head of asset management
at Absolut Bank, and offered an opinion
on benefits. He said, "It [new
system] is a cheaper way of tapping
into Ruble denominated Gold. You will
be able to buy, sell, swap easily. It
is awesome." Operational costs
will be lower, bringing in new players.

The Moscow Exchange is following
the Shanghai
Gold Exchange in listing precious metals
to augment the OTC trading. The goal
is to broaden the range of instruments
available for hedging and liquidity
purposes, and to open the door to more
smaller investors and business types. The bourse will introduce swap agreements
for the metals that are not available
on the OTC market. It is an unusual
move for the stock and currency exchange
to list physical metals. Consider it
a sign that first, Gold & Silver
are currencies, and second, Moscow
intends to challenge the New
York & London criminal control centers. Banks can
deposit or withdraw precious metals
in the form of physical bullion bars,
with delivery and collection to occur
at a nominated Moscow vault, according to bourse officials. The
contracts are also likely to appeal
to brokers, producers, jewelers, and
private investors in the long run. Here
is the shot across the Anglo ship bow.
Trading hours will run from 10am
to 11:50pm Moscow time, with settlement taking place on the
day after the trade. The closing time
in Moscow translates to 3:50pm in New York City. Hence the Kremlin designed their market trading
in Gold to coincide with Wall Street.
If the Anglo Boyz play games, they have
to deliver physical Gold bars the next
day in Moscow. This is a big bold chess move by Putin.
Trading will enforce settlement the
day after trades are made, a radical
challenge to the West. This is Cash
& Carry which can potentially arbitrage
and bleed the LBMA & COMEX in a
painful manner, especially since Shanghai is making a very similar challenge on
a larger platform.

◄$$$ THE DUTCH HIGH COURT RULED IN FAVOR OF A PENSION FUNDS AND THEIR
INVESTMENT IN GOLD. SUPERVISION BY THE
CENTRAL BANK BUT NOT FULL CONTROL IS
THE RULING. $$$

The Dutch Central Bank (DNB) took a Dutch pension fund to court and lost in
a high profile case. They objected when
the fund invested 13% of its assets
in gold. The central bank formally stated,
"Gold is not to be regarded
as a liquid asset, but on the other
hand gold is a risky investment. The
price of gold, according to DNB, is
mainly determined by the demand for
gold for use in jewelry and the confidence
that investors have in gold. So the
value sentiment driven and not driven
by economic activities. Gold has
no intrinsic value, is hardly industrial
application, and does not produce cash
flows. The value of gold is, therefore,
dependent only on the demand for gold.
Only as long as more and more parties
invest in gold, the value of gold [should
rise]. This can quickly lead to bubble
formation, argues DNB." What
a load of trucked in manure! Such deep
stupidity laced with dense propaganda
is their statement, which should lead
to great shame. The Court on September
10th overturned earlier rulings that
had led to the pension fund liquidating
the majority of its gold position. The
pension fund plans to sue for damages,
such as court costs, legal fees, and
possibly lost opportunity. See the translated
article on the official ruling (CLICK
HERE)
and the limited Dutch news coverage
article (CLICK HERE).
Strike a blow against the central banks
in Western Europe.

◄$$$ A NEW COLOMBIAN ATM MACHINE DISPENSES BULLION AND GOLD COINS. THE
KIOSK DEVICES WILL SPREAD ACROSS COLOMBIA, FROM THEIR ORIGINAL MEDELLIN LOCATION. $$$

The Banoro Value Store in late September launched the first ATM in Latin
America that dispenses Gold & Silver
bars and coins. The company claims to
be the first store of its kind to safely
and securely buy and sell gold. At the
ATM machines, a reverse process takes
place, as people can withdraw gold or
silver items using either a credit card
or cash. They can acquire between 0.5
to 250 grams of pure metal units. The
machines are located in Medellin, as part of the 9th International Mining Fair. The irony is
thick, since Medellin
is the home of the feared drug cartel
(also legions of gorgeous women). The
Banoro Value Store ensures that all
metals withdrawn from the ATM are internationally
certified. The ATM can be operated
in five different languages, provides
product information about the desired
precious metal, and reports the updated
international price of gold every 60
seconds. The ground breaking device
is located in the Banoro Value Store
in downtown Medellin, soon to be in shopping centers around the city. See the Colombia
Reports article (CLICK HERE).

## GOLD PRICE POISED FOR QUANTUM LEAP

◄$$$ RICKARDS EXPECT GOLD TO SURPASS $5000 PER OUNCE IN PRICE. HE REGARDS
QUANTITATIVE EASING TO BE A DISASTROUS
POLICY, FAR AFIELD FROM WHAT SHOULD
BE THE CENTRAL BANK ROLE. ITS ACTION
GOES AGAINST WHAT IT SHOULD FOCUS ON,
NAMELY PRICE STABILITY. $$$

James Rickards of Tangent Capital Partners is making bold statements. He spoke
to Hard Assets Investor in an interview.
He urges a prudent path where the
USFed ends QE and its monetized bond
purchases. In the ensuing many months,
the Gold price would reach $5000 to
$7000 per ounce in his estimation. Rickards
believes the USFed should drop its Quantitative
Easing (QE) and just focus on controlling
inflation, since QE will go down as
one of the greatest economic blunders
in history. He appears to be breaking
ranks from the establishment, and making
distance from the mainstream apologists.
He said, "My own view, which
has no chance of happening, is that
they should stop asset purchases completely
and start to sell assets and raise interest
rates. [They should say:] We do not
do stimulus. We are a central bank.
Our job is to maintain price stability.
We are not in the business of boosting
the economy or propping up the stock
market or propping up the housing market.
[The Fed's rationale] has gone way
outside the mandate. QE will go down
as one of the greatest economic blunders
in history. Over three or four years,
we are looking at a much more serious
risk of financial panic and collapse,
with a rise in gold to significantly
higher levels."

Rickards has turned idealist, hardly a pragmatist. The practical objective is
to avert the collapse by continuing
the extreme sequence of QE whisky and
a ZIRP chaser. He warns that the Gold
price could slip in the nasty unusual
fallout from the USFed blunders, but
its ascendance is assured. Rickards
predicted the precious metal could reach
$5000 to $7000 an ounce. He expects
no monumental change in the USFed data
in the next couple of weeks. It sounds
like he has a large personal gold position
(haha). See the Money News article (CLICK
HERE).

◄$$$ CHINA SOON MIGHT REPORT ANOTHER
5000 TONS OF GOLD IN THEIR OFFICIAL
RESERVES DECLARATION, ACCORDING TO JIM
RICKARDS. SUCH NEWS WOULD BE INCREDIBLE
AND CAUSE GLOBAL SHOCK WAVES IN THE
FINANCIAL SECTOR. HE BASED THE FACTOID
ON HIS SOURCES DEEP INSIDE THE PHYSICAL
GOLD MARKET. HE FORECASTS A $13,000
GOLD PRICE. $$$

Rickards anticipates China will report gold reserves
of 5000 tonnes next year, in a sort
of synch with The Voice. Actually, my main source informs
that China actually has already at least 15,000 tons
in a fast growing reserves mountain.
So they might admit to having one third
of that higher real amount. Jim Rickards
expects China will shock the world with a formal statement
on their official gold reserves next
April, with data to show 5000 tons of
gold. He told the Agora Financial Investment
Symposium, "I have spoken
to a number of people who are very close
to the physical market. I have done
my own investigations. Every time I
have an estimate and try to verify it,
what I get back is that I am wrong on
the low side [with the 5000 tons figure]."
If the disclosure comes, it will cause
a tremendous stir with terrific global
shocks.

Imagine Russia making a similar disclosure at the same
time. The rumors would be reeling with
reports of imminent gold backed Yuan
and Ruble competing with the Wester
fiat toilet paper currencies. The Price
of Gold would be forced higher, perhaps
much higher, maybe double the current
rigged price. Big Western Banks would
either die suddenly (without gold in
portfolio) or come to live suddenly
(with gold in reserves). Questions would
arise as to why the Chinese have done
this secretly, and whether in collusion
with the bullion banks. The answer is
obvious. They wish to exploit the lower
price. They wish to use the USTBonds,
UKGilts, EuroBonds and leverage to secure
more gold bullion. They are still buyers,
and wish for the cheap price to continue.
They have 100 times the patience of
the American and British and European
investors.

Rickards continued, "That should be an earthquake. Because even the
gold deniers, the gold doubters, are
going to have to sit up and take notice.
Either the Chinese are dopes, which
they are not, or people will start to
get gold, which I think they will. The
world of $4000 gold is the world of
$400 oil, $100 silver, higher prices
for copper, corn, wheat and everything
else. In other words, it is a world
of very high inflation in which the
value of your retirement funds and your
annuities have been wiped out."
Notice the end comment about severe
damage to the pensions generally, implying
either severe debasement or even confiscation.
He concluded that China will then command a seat on the top table
of the central banks when it comes to
laying out a future strategy that includes
a gold-backed currency. But suddenly,
Rickards goes off course and enters
the Land of the Mainstream Landmines
& Morons by suggestion of an IMF
super currency, even a gold-backed super
currency. The reality is that the IMF
has entered the outhouse, not the corner
office. The are the ignored office,
the band of harlots fully exposed.

In fairness to Rickards, he has in the recent past made his position more clear
than on this subject. He regards the
IMF devices of Special Drawing Rights,
even if reinforced, to be more of the
same inflation paper flow with no real
solution. If the IMF offers a gold-backed
SDR basket of currencies, it would quickly
kill its designers and participants.
The pursuit of gold bullion to back
the USDollar, the British Pound, the
Euro, and the JapYen would kill all
four nations in rapid style, from
their sovereign bonds to their banks,
a death blow. Not gonna happen!! See
the Arabian Money article (CLICK HERE).

Elsewhere, Rickards is quoted to have said, "In the short-term, if investors
want to buy a precious metal, I would
buy silver because silver has more
upside. We are seeing increased
demand for solar, massive money printing,
and this means huge upside for Silver.
But for patient investors, they should
know that in the future instead of Gold
trading in the $1315 area, Gold will
be trading at $13,150 [per oz]. There
is going to be a spectacular rise in
gold. We are getting closer to that
big move as the Chinese begin to accumulate
another 5000 tons of gold."
The Chinese disclosure could turn out
to be the key news item The Voice referred
to in a private message last month,
with no followup details. The Jackass
gut believes he is instead referring
to something much bigger, like a
pathway from Chinese Yuan full convertibility,
to a fully developed Capital Account,
and a future indication finally of a
gold-backed Yuan with a gigantic reserve
hoard in gold bullion. Then later
the kill shot will be cooperation with
a Gold Trade Center Bank managed by
the BRICS, enabling full blown Gold
Trade Settlement with gold bank intermediaries.
It is very doubtful that Rickards and
The Voice are reading off the same page,
but the paths detected might be parallel.

◄$$$ WILLIAM KAYE ATTESTS TO STRONG ASIAN GOLD DEMAND. HE POINTS THE FINGER
OF A VERY LARGE SOVEREIGN GOLD BID BEING
CHINA,
WHICH STRUGGLES TO MEET HUGE DIVERSE
NATIONWIDE DEMAND. KAYE BELIEVES A GOLD
PRICE WITHOUT INTERFERENCE APPROACHES
$3000 PER OZ. $$$

William Kaye is a Hong Kong based hedge fund manager with
25 years experience at Goldman Sachs
in mergers & acquisitions. He follows
the gold market from Asia with a keen perspective. Kaye concludes there is a massive sovereign
bid in the Gold market at this price
level. It is from China to meet an insatiable
demand that is broadbased and deep.
He began with comments on the characteristics
shown that defy any bear market description.
Without market interference, he estimates
the equilibrium Gold price to be close
to $3000 per ounce. What follows are
his thoughts.

The orchestrated Gold market interference against gold is not over. Kaye calls
the futures contract device on price
discovery to be the dog wagging the
tail of the real gold market, whose
physical market side is still incredibly
robust. He attests to very strong
demand from China,
India, and elsewhere in Asia, where nations have
lost trust in the US
financial systems. He warned, "Your
listeners (and readers) need to be clear
that we have none of the characteristics
of a bear market in Gold. Gold is
still very much in a bull market, but
that is physical gold. The claims on
paper gold exceed physical gold by roughly
93 to 1. Those are not my numbers; those
are the Reserve Bank of India's
calculations, and they are the ultimate
insider." He emphasized how
the buyers at central banks in China,
India,
and Russia find these prices favorable, as does his
own hedge fund in Hong
Kong. He described a strong buyer around
the $1300/oz price, with a sovereign
identity. He suspects it is China,
which he believes is running out of
gold to satisfy the huge nationwide
dem and.

Kaye pointed out other significant factors which confirm strong physical demand
to distort the Gold market, and the
end game being near the finish line
since the manipulators are exhausted.
He identified the key unmistakable signals.
"This [demand] is clear from
the continued backwardation of gold,
and the continued negative GOFO rates,
which is basically the same thing. It
is very obvious to me that the parties
which are orchestrating this manipulation
are running out of physical metal necessary
to orchestrate the manipulation."
He made some conclusions on the equilibrium
price of Gold. The adjustment in price
following the manipulation will be something
to behold. It might not be far off in
time. He concluded, "If we can
just get it [this downside move] over
with in the next couple of weeks, that
would be fantastic. Then gold would
migrate much higher and we would seek
the equilibrium price for gold, which
in my opinion is well above $2000 an
ounce, absent manipulation, and
possibly $3000 an ounce. It is going
to be very good times for people who
were able to endure the pain."
He does not factor in the Allocated
Gold Account scandal, with requisite
replenishment of tens of thousands of
gold tons, nor the Gold Trade Standard
installment. Hence the move toward $5000
and $7000 per ounce, and beyond. See
the King World News interview (CLICK
HERE).

◄$$$ JOHN ING CONNECTS A FAILED USGOVT BUDGET RESOLUTION TO A PANIC SPARKED
INTO GOLD. THE SAFE HAVEN TO ESCAPE
THE THREAT OF A USGOVT DEBT DEFAULT
IS GOLD, AND ALWAYS HAS BEEN GOLD. FAITH
IN THE USDOLLAR IS BEING DEEPLY DAMAGED,
WHICH MIGHT HAVE BEEN BY DESIGN. $$$

The USGovt shutdown has caused the USDollar to weaken even further. During the
time leading to and including the shutdown,
a 17-day period saw the US DX index
decline by 2.3%, and has now broken
the critical psychological level of
80. Convenient for the banker cabal,
the Chinese were briefly on holiday
during this timeframe. It left the door
open for more serious manipulation in
the gold market. This interference came
amidst discussion of USGovt default
potential, and conflicts over raising
the debt ceiling. In the past, when
the ceiling has been raised, Gold has
enjoyed a runup in price. Ing commented
on coordinated selling and intervention,
wondering if the cabal would ever run
out of bullets. He marveled at their
resourcefulness and keen ability to
exploit the quiet trading periods.

Ing said, "Both sides are digging in their heels. I am afraid that this
game of chicken is going to have more
dramatic implications for the US dollar,
which in my opinion is still headed
down. In fact, the US dollar can go
significantly lower from here. I would
not be surprised to the US Dollar Index
quickly hit the next level of support
at 76. Of course, that would have a
positive effect on gold. You will see
a scramble for gold in that environment.
That is going to be a catalyst for gold
ultimately reaching new highs. My expectation
is that given foreign offshore money
holds something like half of the US debt, as that money seeks a safe haven, the
default currency has been and will continue
to be gold. This will have a powerful
effect on the price of Gold in terms
of moving it higher, particularly since
this move will be reinforced by the
massive physical buying."
Ing makes a great point, as he cautions
that the bank cabal will find it increasingly
difficult to manipulate the Gold Price
lower, against the backdrop of the historic
events that are currently unfolding
and in rapid fire. See the King
World News interview (CLICK HERE).

The Ing observation points out the many different doorways that could blow open
and cause a rush of people, money, and
wind. The Ing concept of USGovt debt
finance crisis is one of a great many
possible open doors to blow the Gold
Price skyward. Many are the questions
that are posed to the Jackass in client
messages, often inquiring what will
finally serve as impetus to drive the
Gold Price much higher. My response
is usually Gold Trade Settlement and
conversion by the BRICS Bank of USTBonds
into Gold, initiated by Western bank
collapse and sovereign bond panic. My
responses list the other potential forces,
like the following, with a dream at
end.

a broad Western bank system failure (recapitalize with gold)

a broad sovereign bond breakdown (seek gold-backed currencies)

severe impact on Gold & Silver mine output from lower official prices
(decline to last years after going
over the production cliff)

a global resolution declaring the USDollar to be a narcotics backed currency

a UN resolution to ban the USDollar (funds USMilitary and CIA aggression).

◄$$$ STEPHEN LEEB FORECASTS A SUPER-SURGE FOR SILVER PAST THE $100 LEVEL,
DUE TO THE FINANCIAL SECTOR IMPLOSION.
BUT THE MAINSTREAM NEWS WILL STRESS
ITS PHOTO-VOLTAIC USAGE. THE CHINESE
ARE PURSUING GIGANTIC GOLD SUPPLY FOR
RESERVES IN PREPARATION FOR THE USGOVT
DEBT EVENTS AND THE ENTIRE FINANCIAL
COLLAPSE SCENARIO. LEEB CITED THE 5000
TONS OF CHINESE GOLD ACCUMULATION, A
SECOND SOURCE CONFIRMATION. THE UNITED
STATES IS PLAGUED BY POOR LEADERSHIP
AND BAD POLICY IN THE BEIJING VIEW, THE GOLD RESERVES TO BE DEFENSIVE.
$$$

Stephen Leeb is a very bright fellow (founder of Leeb Capital Mgmt) with excellent
vision shown over 20 years. He specializes
in mega-trend stories. The following
are his thoughts. The USGovt is under
watch for their incompetence, as they
dance at the edge of the precipice.
Amidst the mayhem, Gold cannot find
a strong bid. The Jackass believes because
debt default would collapse structures,
pulling all assets down. India
has reduced its bid volume, strong-armed
by government rules. The Chinese continue
to buy with incredible aggression. China
just imported a staggering 131 tons
of gold through Hong
Kong, but they obtain gold from other
routes. Leeb's sources tell of the
Chinese in progress to accumulate another
5000 tons of gold. The story is a second
source confirmation of Rickards.
It is highly doubtful the two men travel
in the same circles. With urgency, China strives to gather as
much gold as they can as fast as they
can. The Chinese plan for the USGovt
debt default, if not this time than
a later time. They keep focus on the
Gold Price for the next five years.
My gut tells me the Chinese are forcing
the debt default in a complex sequence.

China has really accelerated their need
to acquire gold, but also their willingness
to let gold prices soften. Loeb suspects
the Chinese are involved with some paper
selling with futures contracts, just
to weaken the market a little bit. To
be sure, the Chinese want gold, as
fast and as much as they can possibly
acquire. But they require large quantities
of gold, in defensive posture for the
trouble they observe in the United States. They clearly see the situation
in the US
as unsustainable. Everything from the
energy policy, to ObamaCare, to outsourced
industries, to endless supply wars,
the United States does not have its act together.
The Chinese have awakened to the
urgency to accelerate their schedule
in terms of accumulating large amounts
of gold. Front and center right now,
the Chinese want gold as a high priority,
but they are not going to offer publicity
to their goal. They will exploit any
price weakness in the gold market for
very large quantity purchases at highly
discounted prices. This may frustrate
long-term holders of Gold, but they
must be patient while this plays out
for many more months or even a few years.
Sadly, natural buyers like John Paulson
are out of the market, having already
acquired their positions. These buyers
are on the defensive, not willing to
step in to support the price.

Leeb spoke of his expected price movements. The Gold price will rise, perhaps
in spite of the China factor paradoxically.
Global demand is rabid. He said,"But
every single dollar lower in the price
of Gold from here will be dwarfed when
the price turns around and heads to
the upside. It would not surprise
me at all to see gold trading ten times
higher than current levels years from
now [as in $13,000 per oz]. So this
is just noise we are seeing right now
in the gold market. These are moves
that are manipulated, and they are just
positioning in gold. In the end there
will be a dramatic reversal. With all
of that being said, I do not expect
gold to go much lower from here. Gold
could test the lows, but we are talking
about roughly 5% at the most. That is
a very small number in the big scheme
of things. Against that, we are talking
about gold heading possibly ten times
higher from current levels. So the risk/reward
ratio has not changed at all in gold.
In fact, it is dramatically positive
and if anything, it is getting more
positive." Notice the Leeb
price target for Gold near $13,000 is
in line also with Rickards. They speak
in the same terms.

Leeb concluded that the mainstream press will emphasize the demand for photovoltaics,
which is expanding enormously right
now. They will choose not to give further
emphasis to the deep trouble the financial
structures are intractibly bound in
with solution short of a Gold Standard
return. He said, "Demand for
Silver in this [solar] sector has nowhere
to go except higher. This is going to
drive the price of Silver over $100.
I expect Silver to be stronger than
Gold over the next year or two because
of this explosive situation. It would
not surprise me at all to see the price
of Silver hit $110 in the next 24 months.
The price of Silver is going to super-surge.
But the mainstream media will be saying
it is because of massive demand for
photovoltaics. They will not be admitting
that it is also because the financial
system is going to hell." See
the King World News interview (CLICK
HERE).

## STRONG EASTERN GOLD DEMAND

◄$$$ CHINA'S GOLD IMPORTS FROM HONG
KONG REMAINED ABOVE 100 TONS IN AUGUST
(TYPICALLY A SLOW MONTH). HONG KONG GOLD IMPORTS SURGED TO THE HIGHEST EVER ON RECORD, MORE THAN
THE MONTHLY GLOBAL GOLD MINING OUTPUT.
CHINA'S UNSTOPPABLE GOLD IMPORTS
CONTINUE VIRTUALLY UNCHECKED IN EXPONENTIAL
GROWTH. THEY ARE PREPARING FOR SOMETHING
BIG IN A SYSTEMIC SHIFT, FULLY SUPPORTED
BY THEIR POPULATION. $$$

The slow August month was recorded, as China's
net gold purchases from Hong
Kong registered at 110.5 tons. They
maintain fierce demand, each month above
100 tons for four consecutive months. Strong demand persisted for jewelry
and bars in the nation posing as the
world's second biggest bullion consumer.
The July figure was 116.385 tons. All
data came from the Hong Kong Census
& Statistics Dept. The net gold
imports to China
from Hong Kong have totalled a whopping 744.818 tons for the first eight
months of the year. The purchases
from India stand at almost 600
tons, as of August. Any concern of a
slowdown in China is without basis, since
the August month is typically slow.
The nation remains on track to comfortably
surpass 1000 tons of known net gold
imports for the year. Extrapolating
the current pace over the full year
would give a total import figure of
1084.5 tonnes via Hong
Kong alone. Expect a higher amount,
since the pace is accelerating. The
full year would be more than the officially
stated lowball figure admitted by the
Peoples Bank of China. A curious data point
comes with the dramatic surge in imports
and re-exports to mainland China,
where almost 300 tons were imported.
The amount exceeds the entire global
production of gold from mining for the
month of August. Impressive for
a quiet month, as the exponential rate
is crystal clear. See the Reuters article
(CLICK HERE)
and the Arabian Money article (CLICK
HERE).

◄$$$ SPROTT BELIEVES INDIA WILL DOMINATE THE SILVER
MARKET IN 2013. THE NATION IS ON PACE
TO CAPTURE 25% OF THE GLOBAL ANNUAL
SILVER MINE OUTPUT THIS YEAR. A SHARP
REACTION TO HARSH RULES ON GOLD PURCHASES
HAS FORCED INDIANS TO JUMP THE TRACK
TO SILVER. $$$

The fundamentals are changing, but they all favor silver. It will soon be reflected
in the price. The most recent import
data from the Indian Govt confirms that
Indians are importing significant quantities
of silver. Nikos Kavalis from Metals
Focus Ltd shows that India
imported US$1.78 billion worth of silver
during Q2, a massive 311% increase over
the same period last year. The volume
equates to 3015 tons of silver in the
first half of 2013, putting Indians
on course to import on the order of
6030 tons of silver this year. If this
trend continues through the rest of
2013, the highest silver imports in
the past five years would be witnessed.
An update. Koos Jansen of the Netherlands
reported the Indian Silver imports on
a year-to-date basis through July to
be 3942 tons. Compared to last year
on the first seven months, the growth
is 138% compared to 2012. They imported
797 tons of Silver for the July month,
a 14% rise sequentially from June and
a 103% rise from a year ago in July
2012. Clearly the big surge was in the
first quarter. See the Koos Jansen article
(CLICK HERE).

The Indian import data indicates the arrival of silver
bullion from all corners of the world
to satisfy demand, the most notable
sources being the United
Kingdom, Switzerland,
and China. Many countries are making their first
silver shipments to India this year.
The Indians have become an enormous
new buyer of silver, partly in response
to the stricter rules against Gold purchases.
Take a look at global data. According
to the Silver Institute, the world produced
24,478 tons of silver in 2012, meaning
the Indians are currently on track
to import 25% of the world's mined silver
supply. The number could increase,
given the forecasts for monsoon season.
See the Sprott Group research essay
(CLICK HERE).
Also, see the Russia Today news article
(CLICK HERE) on Indian
gold smuggling in update. Nothing can
stop demand, the old fashioned arbitrage
method.

◄$$$ US-BASED GOLD COINS DEMAND IS DOWN 81% IN SEPTEMBER, THE LOWEST MONTHLY
TALLY IN SIX YEARS. USMINT SILVER SALES
REMAIN VERY ROBUST IN CONTRAST, DESPITE
SOME SILVER BLANK SUPPLY SHORTAGE. $$$

The Syrian conflict motivated the bank syndicate to suppress the Gold price
with even more gusto. The threat of
USGovt shutdown motivated the cabal
to suppress the Gold price further.
The US gold coin sales fell markedly
in September after several months of
strong demand to exploit the bargain
price. The September sales data
was 81% below the same month in 2012.
Total sales of American Eagle gold bullion
coins on the month by investors were
13,000 ounces versus 68,500 in September
2012. The monthly average has been nearly
90,000 ounces for the first eight months
of this year. The August figure was
11,500 ounces in August, very tame and
the lowest for the month in six years.
The highly seasonal demand is often
weakest in the summer months before
the extreme rise in the autumn months
leading to Christmas. Americans buy
jewelry for the holidays, while jewelers
in India buy ahead of the Hindu
festival of Diwali, a major gold buying
event.

Silver was a different story. Sales of the American Eagle Silver bullion coins
totaled 3.013 million ounces, only 7%
below the 3.255 million ounces recorded
in September 2012. A shortage problem
has inhibited even greater sales, which
require a deeper interpretation of sales
data. The USMint has been limiting
some silver coin sales since January,
due to a lack of coin blanks used to
strike the coins. See the Mine Web
article (CLICK HERE).

◄$$$ ERIC SPROTT COMMENTED ON GOLD, WITH SHORTAGE AND RISING DEMAND, BUT
WITH FALLING PRICE. THE NEW ENTRY IS
CHINA,
TO TAKE 25% OF GLOBAL MINE OUTPUT. THIS
IS A DEEPLY CORRUPT MARKET COMPLETELY
OUT OF BALANCE AND IN DEFIANCE OF PRICE
MECHANISMS. $$$

Eric Sprott calls a spade a spade. He points attention at a deeply corrupted
market where the fundamentals of Supply
& Demand are short circuited by
interventions in the most obvious manner,
done in full view. He wrote, "Well
it is really interesting. In fact it
is funny you should start with 2011,
because the most meaningful thing that
is happened since 2011 (based on the
statistics that come out of Hong Kong
and those are the only ones we have),
is that the exports of gold from
Hong Kong into China have risen from
under 100 tons a year in 2011 to 1200
tons a year in 2013, as we speak
right now. That means that the Chinese
are consuming an extra 1000 tons of
gold. As you are aware, the gold market
is a 4000 ton market. So we have
a participant who stepped in to buy
25% of the gold market and the price
of gold has gone down. I would challenge
anyone to look at any other commodity
where somebody bought 25% of it, whether
its oil, or wheat, or corn, or any substance,
where they would have expected that
the price went down. It begs the question,
I have written on this at least three
occasions. The Western central banks
have been supplying less gold because
the supply of gold has not gone up.
In fact, it was down last year. I am
sure it will be down this year. I am
sure it will be down next year. So
how can we have these new entrants coming
into the market and buying that much
gold, and the price goes down?"
Easy, explained by the most extraordinary
and profound criminal applications to
a market, fully sponsored and supported
by the USGovt, the UKGovt, the USFed,
the Bank of England, and the Euro Central
Bank, with regulators paid to look the
other way. Worse, the Exchange Traded
Funds have been raped and pillaged for
their supply, the GLD Fund even renamed
a debenture. As footnote, the annual
global output of gold is about 2750
tons, not 4000 tons.

◄$$$ THAILAND IS IMPORTING ON THE
ORDER OF $40 BILLION IN GOLD PER YEAR.
ONE IMPORTANT THAI GOLD BUYER HAS DOUBLED
IMPORTS. THE CONSUMERS ARE LEGION IN
THE NATION, BUYING GOLD IN SAVINGS.
$$$

YLG Bullion Intl isThailand's biggest domestic gold importer. It expects to
double purchases this year after the
suppressed prices triggered a surge
in demand for the investment metal.
The company plans to import as much
as 200 metric tons in 2013, up from
92 tons last year, according to CEO
Pawan Nawawattanasub, a veteran in the
gold and jewelry business for two decades.
The company's shipments for January
through June rose to 112 tons, accounting
for 60% of the country's total.
A ton is valued at $42.6 million. Demand
in Thailand rose 58% in the second quarter to 26.6
tons, compared to a year earlier. The
nation was the third largest Asian gold
consumer, behind India
and China
in 2012, ranked seventh globally. The
CEO cited individual investors as comprising
half of gold purchases. She said, "There
has been a complete change of customer
profile. Huge volumes from retail investors
are helping to offset a retreat from
big investors."YLG Bullion
sales rose to 836 billion Thai Baht
(=US $26.6 bn) last year, from 2.6 billion
Baht in 2004, a meteroic impressive
leap from its first full year of operations.
The family has other business interest
in a brokerage firm. See the Bloomberg
article (CLICK HERE).

◄$$$ MALAYSIA IS OFFERING ITS FIRST
GOLD FUTURES CONTRACT IN OCTOBER. NO
DELIVERY TO BE ALLOWED ON THE CONTRACT
YET, WHICH WILL BE SETTLED IN CASH AND
BENCHMARKED AGAINST THE LONDON FIX. IT IS A START. ITS SMALL SIZE WILL
ENABLE THE SMALL INVESTORS TO PARTICIPATE.
EVEN THE LESSER ASIAN PLAYERS ARE FORTIFYING
THEIR DEFENSES AGAINST THE COLLAPSE
OF THE USDOLLAR. $$$

Malaysia's first gold futures contract is
planned to start trading on October
7th. The head of Bursa Malaysia Derivatives
Bhd announced the launch. The small
contract size at 100 grams will bear
a low attractive price for small investors
and merchants wishing to hedge. Bullion
for delivery up to one year will be
settled in cash and benchmarked against
the London
fixing. Although no delivery is yet
planned, the contract is a start. Soon
gold on delivery might be offered. The
size accommodated the retail customers,
while largest customers can simply use
multiple contracts for their purposes.
CEO Chong Kim Seng said, "The
issues that are facing the United
States, the government
shutdown and the tapering policy, have
an impact on the US dollar and interest
rates. So it is important that people
consider gold as part of their portfolio."
See the Bloomberg article (CLICK HERE).

## GOLD SUPPLY FACES THE CLIFF

◄$$$ A LOOMING GOLD & SILVER PRODUCTION CLIFF HAS BEGUN TO ACCELERATE
IN ITS PERILOUS ENCOUNTER. A MINING
OUTPUT DECLINE IS EXPECTED TO HIT IN
2014. THE GOLD PRICE IS A MAJOR ISSUE.
BUT ALSO A DECLINE IN DISCOVERY RATE
AND REMOTE LOGISTICS HAVE PRESENTED
ADDED PROBLEMS. THE LOWER PRECIOUS METALS
PRICES ARE HAVING A PROFOUND IMPACT
ACROSS THE INDUSTRY IN A RIPPLE EFFECT.
$$$

In their outstanding analysis, National Bank Financial suggests a mining industry
Production Cliff Profile
was looming, but now is accelerating
in approach. The term is used by NBF
mining analysts for company profiles
that are set to suffer a significant
contraction in output. The mining firms
do not have rapid enough new discoveries,
and cannot develop the typically remote
sites quickly either. Their report stated,
"We generally reserve the term
for senior producers since this condition
applies to most of them, as it is a
symptom of a landscape where geology
presents natural barriers to reserve
replacement. A declining discovery rate
for very large deposits (>5 million
oz) together with increasingly difficult
development logistics, where companies
explore further afield, present nearly
insurmountable challenges to simply
replace reserves let alone grow production.
In some cases, significant revisions
to 2014 mine plans as companies revisit
cut-off grade strategies to navigate
the current low gold price environment.
As was the case in 2Q2013, the rate
and magnitude of decline in gold
prices was such that most producers
could not respond quick enough. Certainly
there is some scope for minor modification,
but big changes are probably not on
the cards until 2014 when new plans
are being rolled out. [Positioning for
the 3Q] ought to consider what is coming
down the pike for 2014. NBF predicts
that the Production Cliff is likely
to hit in 2015. However, internal
decisions that are a consequence to
lower price could result in an acceleration
of the decline thesis starting in 2014,
well before the previously forecasted
market drop-off in year 2017."

Tough decisions must be made. More impairment charges will come, from properties
suddenly no longer profitable. More
reserves will be written down. Mining
firms must respond quickly to a quantum
drop in Gold & Silver prices, a
warning the Jackass gave three or four
months ago, in a exchange with SRS Rocco.
He expected a slow reaction, which would
be damaging. We agreed. The NBF research
indicated mine output in 3Q2013 will
be unimpressive, while cash balances
are being further depleted. Both lower
metal prices and stricter cut-off grades
have made an impact on decisions. Recent
quarters are reporting sequential declines
in Gold prices, below the free cash
flow threshold for many producers. NBF
acknowledged that firms are not responding
quickly enough. They have longer
time horizons for planning purposes.
Hence expect more reserve writedowns,
more budget cuts, and more production
declines as companies target higher
grades to drive margin expansion and
conserve cash. New high capital intensive
project have been delayed, shelved.
Quality dictates (higher grade, easier
access) over quantity, thus lower output
will be seen with a keen eye on profitability.
Mining firms will focus on cutting overhead
costs, like administrative that include
closing down some regional offices.

A quick survey. Kinross Gold is far along with its cost cutting initiatives.
The firm has delivered four consecutive
quarters of strong operating results.
Franco-Nevada remains one of a few mining
companies where the cash balance is
expected to grow. The structural issues
plaguing the gold sector will be a strategic
advantage for Franco, since it is locking
in more deals at attractive metrics.
At Agnico Eagle, the prospect of a declining
cash balance, with further expanding
credit lines, might not be received
well at quarterly earnings times. See
the Mine Web article (CLICK HERE).

◄$$$ THE RUSSIAN NATIONAL GOLD OUTPUT ROSE SHARPLY by 12.2% IN THE JANUARY
TO JULY TIMEFRAME, AIDED BY SCRAP OUTPUT.
RUSSIA'S
GOLD INDUSTRY IS HIGHLY FRACTURED (DE-CENTRALIZED),
WITH OVER 600 COMPANIES WORKING IN THE
SECTOR. $$$

Gold output across the entire Mother Russia advanced
sharply by 12.2% on annual basis to
122.041 metric tons in the first seven
months of this year. The Union of Russian Gold Producers gave the breakdown for the January to July
period. The country's gold mine production
rose by 8.9% on annual basis, to reach
102.435 tons, while its scrap gold output
rose by 87% to reach 7.9 tons. The rest
was from miscellaneous sources. Three
mining companies were dispatched to
foreign countries, producing 2.516 tons
of gold. They were Highland Gold Mining
with Novoshirokinskoye Mine in the Trans-Baikal
region, and the two companies Polymetal-Albazin
Mine in the Khabarovsk
Territory,
and May in Chukotka.

Gold Miners Union reiterated its forecast for gold output in 2013 at 208 tons,
while the total of production extraction
including secondary sources will increase
to 234 tons. Mother Russia produced
225.846 tons of gold last year, up 6.8%
over year 2011. The current growth
is expected to come from increased underground
gold mining, due to mines commissioned
in 2011 and 2012 reaching capacity production
levels, and new mines being commissioned
this year. Russia's
gold production has increased by 38%
since the collapse of the Soviet Union in 1991. The development of large gold projects held
by the leaders such as Kinross Gold
and Polyus Gold are projected to be
the main marginal contributor to the
increase in Russia's gold production.
Polyus increased output last year by
12% to 1.68 million ounces, while Polymetal
output jumped 33% to 589,000 ounces.
Russia is considered to be the single largest
unexplored gold region in the world,
with large deposits only recently being
discovered. It possesses massive land
expanse that covers eleven time zones.
The United
States and Canada
have three and four timezones respectively.
See the Scrap Register article (CLICK
HERE).

◄$$$ INDIA'S GOLD REFINERIES ARE
HUTTING BULK OPERATIONS. SUPPLY THROUGH
RECYCLING OF USED GOLD DECLINED TO AROUND
10 TONS IN THE SECOND QUARTER OF THE
CURRENT CALENDAR YEAR, LESS THAN HALF
THE USUAL VOLUME. SUPPLIES ARE EXTREMELY
TIGHT. THE GOLD SUPPLY CHAIN STRAIN
IS EVERYWHERE. $$$

According to the domestic trade group Assn of Gold Refineries & Mint, the
gold refineries of India are operating at only
25% of installed capacity. They suffer
from acute shortage of used jewelry,
partly due to zero imported gold in
the last two months. As a result of
the stagnant Gold price, required scrap
sales have declined dramatically.
The weak domestic demand was met only
through existing inventory and recycled
gold. The result is a grand threat posed
in the last few weeks to the national
array of refineries. The facilities
must shift to processing of dorey bars,
the cast bar at 90% purity from the
first stage of gold purification. The
Indian Govt curiously liberalized dorey
bar import early this year, recently
seen as the more economical source of
supply. The system is a mess, since
refineries have unusual challenges to
accept dorey bars, due to procedural
hurdles. Separate licenses are required
from the directorate general of foreign
trade. Refineries will by force
make the shift. Supply through recycling
of used gold declined to around 10 tons
in 2Q2013. In the third quarter, supply
through used gold is expected to decline
further, making for less availability
of scrap for recycling.

A nasty sequence is at work. Government strictures have curbed pure gold import.
Import duty has been hiked to 10%, with
20% of imported volume to be channeled
to the jewelry industry. The public
believes the gold supply will remain
under pressure, the therefore hold back
from disposing of older jewelry items,
resulting in reduced supply of used
gold. The Indians are recently trading
items in upgrade on a more frequent
basis, especially for hallmark types.
They are requesting polish and refurbishing
more lately. The trend is expected
to continue into the fourth quarter.
The distress has spread to the scrap
supply channel. Overall consumer sentiment
is weak in the jewellery markets. The
refineries are in a major bind to engage
in profitable business. "Gold
refineries are on the verge of closure
due to non-availability of used jewelry.
Melting of jewellery scrap to convert
into 24-carat gold has, therefore, become
a loss making process. Operational capacity
has declined to an alarmingly low level,"
said Harmesh Arora, managing director
of NIBR Bullion. See the Business Standard
of India article (CLICK HERE).

◄$$$ JEWELRY TELEVISION APPEARS TO BE RUNNING OUT OF STOCK IN ITS PRODUCT
LINES. THE US-BASED STATION IS RESORTING
TO SELLING BRONZE IMITATIONS (COSTUME
JEWELRY). THE SIGNAL IS CLEAR, BIG SHORTAGE.
$$$

In the United States, a company called JTV (Jewelry Television)
operates. They have been on the air
for years and sell tens of $millions
annually in jewelry and gemstones, with
several regions in presence. They hit
an abrupt wall. In the last year they
have started in earnest to promote sterling
silver, sometimes with gold plating.
A sinister ploy is their practice recently.
They are inducing, not exactly tricking,
customers into buying bronze jewelry.
It is better described as high quality
costume jewelry for kids. Other
alternatives are so much better, even
copper pennies. The point is JTV is
one of the largest retailers in the
United States, no longer with
adequate gold supply. Thanks to a HTLetter
subscriber for the story.

◄$$$ COMEX GOLD INVENTORIES PLUNGED IN LATE SEPTEMBER TO A NEW LOW WITH
MASSIVE WITHDRAWALS. THE IMPACT WAS
TO THREATEN A TOTAL DRAIN ON THE MAJOR
BULLION BANKS. $$$

COMEX had enjoyed a respite in late summer, but no more. Their Gold inventories
suffered a huge withdrawal from an HSBC
withdrawal, which took the total warehouse
stocks to a new low not seen since 2006.
A sizeable hit of 173,358 oz gold
was withdrawn from the HSBC Eligible
category took place a couple weeks ago.
The single withdrawal was so massive
that it would have totally wiped out
Brinks, HSBC, Scotia Mocatta, and most
of JPMorguen Registered inventories.
See the Max Keiser article (CLICK HERE).

## SHALE & MINING RETREAT

◄$$$ THE GREAT SHALE EXTRAVAGANZA CONTINUES TO BE SCALED DOWN AND PHASED
OUT, REVEALED AS A PONZI SHAM. SHELL
OIL WILL ABANDON ITS COLORADO
SHALE PROJECT. THEY ARE NOT ALONE. DESPITE
CONSISTENTLY HIGH OIL PRICES, SHALE
DOES NOT PAN OUT. THE GEOLOGY IS TOO
DIFFICULT AND THE PROCESSES ARE TOO
ENERGY INTENSIVE. $$$

Royal Dutch Shell has decided to abandon its 800 billion
barrel resource of shale-based oil in
Colorado after 31 years of experimentation. Shell stated a desire to
shift resources toward profitable opportunities. The experts estimate the EROI of
oil shale at best is 2:1 ratio, according
to Cleveland Cutler. Shell claimed the
Energy Return on Investment ratio of
around 3 to 1 at one time. While the
ratio seems good, consider that the
global economy is currently running
on crude which at a ratio around 20
to 1. Such is the sham of the shale
story, six to seven times less efficient
than conventional oil projects, but
with Obama Admin cheerleading. Shell
is not the only one to withdraw. Another
international major, Chevron dropped
their oil shale project last year.
Slowly, the USGovt-led hype of the trillions
of barrels of supposed US
oil resources may indeed by losing some
its muster. It is a grand deception
and lie. Furthermore, the big oil
firms are gradually exiting the shale
projects by slowly and silently selling
assets, guaranteeing no quick return
on projects. Deep pockets, sophisticated
technology, and high oil prices cannot
seem to unlock the billion barrels of
recoverable resources. The potential
prize is huge, but the costs are too
high. Consider advocate Porter Stansberry
another backer of a losing horse.

The Denver Post revealed the hitch as obstacle to be the requirement of a
dedicated power plant to enable full
scale production. Rock structures must
be heated to release the waxy hydrocarbons
embedded in them. In this pilot
project, the subterranean rock was heated
for three years before liquids were
captured and brought to the surface
for further processing. In addition,
the need for large volumes of water
are required, this in near desert conditions.
Water is needed to cool power plants
associated with oil shale extraction
and for processing the extracted liquids.
The decade of drought in the region
exacerbated the problem. A technical
lesson. Oil shale is a promotional term.
Oil shale is neither shale, nor does
it contain oil. It is better characterized
as organic marlstone. It contains kerogen,
a waxy complex hydrocarbon that must
be extensively processed to convert
it into a synthetic form of crude oil.
Oil shale is often confused with oil
taken from deep shale formations such
as the Bakken in North
Dakota. The oil is more correctly called
Tight Oil.

The Shale story is a big disappointment. Consider its history relative to the
oil price. Proponents of oil shale claimed
in 1981 that it would be economical
to process if oil were to reach $38
per barrel and remained there. Their
threshold economical price kept escalating
along with the price of oil all the
way up to $80, claimed a 2008 study
by the US Bureau of Land Mgmt. Today,
the current Brent Crude world benchmark
hovers over $100 dollars. The average
daily price for the past three years
has been fixed above $100. Despite the
consistently high oil prices, Shell
is abandoning oil shale development
along with Chevron. The Shale Sham Story
will be more clearly exposed by end
2013 and early 2014. The Obama Admin
will backtrack or look like idiots.
See the Oil Price article (CLICK HERE).

◄$$$ CHESAPEAKE WILL CUT A HUGE SLICE OF WORKERS. THE PHONY UNITED STATES
SHALE STORY IS COMING UNDONE. THEY ARE
THE LARGEST SHALE PROJECT DEVELOPER.
THE SHALE SHAM IS A VICTIM BOTH OF THE
ENGINEERING COSTS DRIVEN BY DIFFICULT
GEOLOGY AND LOW NATGAS PRICES. $$$

A shakeup comes to Chesapeake Energy Corp. Under a new CEO Doug Lawler (formerly
of Anadarko) the company has cut its
entire natural gas vehicle team, with
more layoffs likely soon. The firm has
pushed for wider usage of natural gas
vehicles. The dismissal of its entire
7-member team signals change in focus
for the natural gas giant. The team
worked to convert much of the Chesapeake
commercial fleet of trucks to run on
natural gas. Lawler has ordered a comprehensive
review of all areas by November 1st.
The emphasis will be on return of investment.
Former CEO Aubrey McClendon, who co-founded
the company, had made a big commitment
to asset acquisition binge. The company
snagged US shale basin properties. The
strategy backfired when the outsized
debt amassed ran into headwinds for
debt service when the natgas price decline
struck in 2008. The large collection
of assets in the portfolio could not
be profitably developed. Conclude
the the largest shale gas company is
preparing to retrench in the Shale region,
precisely when the national consensus
regards shale energy as something of
a savior for the USEconomy. See
the Oil Price article (CLICK HERE).

Consider the entire movement, pushed by the hapless showmen at the USGovt, to
be a grand national misstep. It will
almost be funny to observe the Shale
Story dismantled. The hype provided
by the clown in the White House promoted
it as an important pillar, when it is
simply the latest link in a long chain
of USGovt travesties. The Team Obama
is as left-footed as Bush was simple-minded.
The US leadership crew is losing credibility
at every turn, from the promoted housing
bubble to the TARP Fund to the USFed
sanctioned hyper inflation to the USG
budget impasse to the USMilitary wars
for supply to false accusations of Iran
nuclear programs to Libyan gold theft
to obstructed Iran-Pakistan pipeline
to Egypt puppet overthrown to Syrian
chemical false flag call toward war.

Credit to Steve StAngelo (aka SRS Rocco) who nailed it a while ago with his
detailed analysis of the shortcomings
of shale projects. Yet another major
milestone that foretells when the crisis
hits, the United States will be forced
to increase oil imports, not the other
way round as touted by the consistently
misdirected myopic propaganda pumped
out by Wall Street. Keystone will
be forced upon the US for its survival.
The Voice put an emphatic exclamation
point, saying "The US
house of lies, deceit, fraud, and Hollywood
orchestrated scheiss is sinking deeper
and deeper into its own pit."
The errors are as serious as the criminal
activity. The predatory activity is
both in the economy and the war fronts.
The common theme is sacked capital and
criminal drain.

◄$$$ THE JUNIOR MINING FIRM CASH CRISIS MOUNTS. NO QUICK TURNAROUND IS
SEEN. THE SECTOR IS BEING TRANSFORMED
INTO MINIATURE ZOMBIES. THEY ARE DYING.
$$$

The Junior mining firm cash crisis grows worse by the month. No quick turnaround
is seen for the firms as a near majority
of Venture listed firms suffer from
cash stores under $200 thousand.
The key sector for exploration in a
dominant nation like Canada cannot be
sustained with so little cash. The number
of exploration equities trading between
C$0.005 to C$0.01 pile up, as in between
half a penny and one penny. The do not
even qualify to be called Penny Stocks.
They are a cross between carrion and
zombies. Kaiser Research has recent
data on average junior working capital.
Back in November 2012, the number of
juniors with less than C$200,000 in
cash stores was 632 out of around 1800
firms. In June 2013 the number grew
to 751. At the turn of October, it grew
to 816, about half the equities measured.
This is not a sector downturn, but rather
a famine. The August run was more like
a fleeting drizzle, the waters shallow,
sapped in just weeks. See the MineWeb
article (CLICK HERE).

◄$$$ MEXICO PLANS TO IMPOSE A 7% TO 8% MINING TAX,
LIKELY TO SMOTHER INVESTMENT. THE TELLTALE
SIGNS POINT TO A SHIFT TO CHINESE INVESTORS
OVER NORTH AMERICAN. $$$

Until the summer months, Mexico was one of
the rare countries left in the world
that chose not to impose taxes on mining
production or profits. That has changed.
A proposed 7.5% tax on Mexican resource
companies, and as much as 8% for gold,
silver, and platinum miners, is driving
off investors and discouraging participants.Mexico has long had a 35% corporate tax that is
enforced quite rigorously. Just when
the fears of drug cartel dominance and
government disintegration seeped into
the investor psyche regarding Mexico,
a surtax is coming to smother investment.
The surreptitious plan is coming into
view. Mexico could be facilitating
equity ownership for Chinese investors
at the expense of US investors, the
former in upper level deals, the latter
in discouraged equity ownership.
Those who control the physical stock
of gold control the price. Refer to
the ore bodies below ground, and the
equity shares above ground. The exit
doors for the cabal are collapsing.
See the Mining article (CLICK HERE).